Kibos Sugar company plans to diversify its products to include ethanol, paper, and electricity, according to its chairman Sukwinder Chathe.
He said they plan to invest more than Sh4.8 billion to undertake the diversification programme. The projects will begin next year. "We have agreed with a financier who will do all this, for us, " he said in Kisumu.
He said the company targets to produce over 10 million litres of ethanol annually that will be exported to Comesa countries and establish a 15 megawatt electricity plant. Chathe said the plant will reduce the company's electricity cost.
"The plant is expected to produce power to subsidise the company's electricity expenditure and enable us divert our savings towards supporting farmers," he said..
The company joins a growing list of local firms that are getting into ethanol production to feed demand to be created by new legislation that requires blending it with fuel.
Spectre International and the government-run Agro-Chemical Company which mainly target the export market are currently the leading producers of ethanol.