Government pledges to clear sugar workers’ dues in full despite fiscal pressures
The move comes as part of ongoing efforts to revive the sugar industry and safeguard the livelihoods of thousands of workers and farmers across the sugar belt.
The government has reaffirmed its commitment to settle all outstanding payments owed to workers in public sugar factories, with Agriculture Cabinet Secretary Mutahi Kagwe assuring that every shilling will be honoured despite fiscal constraints.
The move comes as part of ongoing efforts to revive the sugar industry and safeguard the livelihoods of thousands of workers and farmers across the sugar belt.
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Speaking during a meeting with the Kenya Union of Sugar Plantation and Allied Workers (KUSPAW), the Kenya Sugar Board, and representatives of the four leased state-owned sugar factories, Kagwe emphasised that paying workers’ arrears remains a top priority for the administration.
The meeting was attended by KUSPAW leaders Bernard Wanyonyi (National Chair), Francis Wangara (General Secretary), and Jared Oluoch (Deputy General Secretary), along with Kenya Sugar Board CEO Jude Chesire and Principal Secretary Dr Ronoh Paul.
“We are not refusing to pay. We are working within fiscal realities, but every shilling due will be honoured,” he said, stressing that both employee rights and welfare will be fully respected.“This office remains open and fully committed to ensuring workers and farmers receive what they are owed.”
Kagwe noted that the payment programme is already underway, and the government has also begun clearing longstanding dues owed to sugarcane farmers. He described the leasing of key state-owned sugar factories as a strategic step toward improving sustainability, efficiency, and job creation within the sector.
The majority of workers from the factories are expected to be reabsorbed by the private operators who have taken over the mills, while others will exit through retirement.
To ensure accountability and smooth operations, the CS issued several directives for the sector. These include the immediate resumption of full operations in all leased factories, urgent repairs of mill facilities, and strict adherence to investment commitments.
He also clarified that only the CEO of the Kenya Sugar Board is authorised to approve weighbridge operations, warning that unauthorised weighbridges and disruptions to cane zoning and harvesting areas will be closed immediately.
The CS reaffirmed that the government’s agenda for the sugar sector is focused on restoring confidence, protecting livelihoods, and ensuring fair and transparent operations across the value chain.
Recently, Attorney General Dorcas Oduor informed the Employment and Labour Relations Court that the issues raised by sugar factory employees could be handled outside court, as talks between the parties were already in progress. The affected workers came from Chemilil, South Nyanza (Sony), Muhoroni, and Nzoia sugar factories.
They had moved to court, accusing the government of declaring redundancies while discussions on their benefits and dues were still ongoing. In their petition, they claimed there was no structured plan explaining how they would receive payments in lieu of notice, accrued leave, severance pay, or pending benefits such as pension contributions and other statutory deductions.
The court directed the Attorney General to confirm whether the proposed out-of-court solution was acceptable to the workers ahead of the next mention, which was set for October 30, just a day before the redundancy notices were to take effect.
To revive the sugar industry, the Ministry had leased the four public factories to private investors under a 30-year agreement. The beneficiaries were Kibos Sugar and Allied Industries, Busia Sugar Industry Ltd, West Valley Sugar Company, and West Kenya Sugar Company.
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