In 1967, the Government of Kenya commissioned Booker Agriculture and Technical Services to do a feasibility study on the viability of growing sugarcane in Mumias and then initiate a pilot project.
At the time, the Mumias area was underdeveloped, land utilization was poor as farmers grew food crops on small areas for subsistence only, while the rest of the land was purely for grazing. The relative remoteness of the area and poor communication prevented the development of an active market economy.
However, owing to the fact that land adjudication had been carried out and farmers had freehold title to their land, this favoured the proposed sugarcane project of which studies had returned a clean bill of health.
It was possible to establish a viable sugar scheme at Mumias with the Factory supplied by cane from both the Nucleus Estate and the indigenous Outgrower farmers.
The Government accepted the findings an on July 1, 1971 incorporated Mumias Sugar Company as the body to implement the Project. The Government was to hold majority shares (71%) and minority interests held by the Commonwealth Development Corporation (17%), Kenya Commercial Finance Company (5%), Booker McConnel (4%) and the East African Development Bank (3%).The major objectives of establishing Mumias Sugar Company were to:
- Provide a source of cash income for farmers
- Create job opportunities since there was no major industrial undertaking in the area at the time
- Curb rural-urban migration
- Reduce overdependence on importation and aim for self-sufficiency in sugar production
- The Company was also expected to operate on a commercial basis and make profits.