Kisumu: The government has announced its commitment to clear Sh1.9 billion in verified salary arrears owed to workers of four former state-owned sugar mills. Agriculture Principal Secretary (PS) Kiprono Ronoh revealed that this move represents a renewed effort to address legacy liabilities following the leasing of these factories to private millers.
According to Kenya News Agency, PS Ronoh stated during a visit to Chemelil Sugar Company in Kisumu that the arrears have been thoroughly audited and allocated in the national budget, ensuring payment to employees who were initially hired by the government before the transition of the mills to private entities. “During the handover of the four sugar mills, the government undertook to absorb part of the liabilities, including employee salary arrears,” he mentioned. The PS confirmed that the Sh1.9 billion has been set aside to pay all verified arrears.
Ronoh also highlighted that the government had addressed other outstanding obligations related to the transition. He added that statutory deductions owed to workers are currently under audit and will be cleared once verified. Priority will be given to employees not absorbed by the new millers during the payment of the audited arrears. He encouraged workers to remain patient as the government completes the process, emphasizing that the leasing program aims to stabilize the struggling sugar sector and promote new investments.
The PS noted that over 80 percent of the workforce has already been absorbed by the new operators, with expectations of significant employment growth as the mills increase production. “Previously, the four mills employed about 3,500 workers. Based on the plans presented by the millers, we are looking at employment growing to about 10,000,” he said, urging investors to employ more youth to support sector recovery.
Additionally, he assured suppliers and farmers that their debts have been audited and will be settled. The government has cleared most farmers’ arrears, with only specific balances remaining for certain millers. He also encouraged farmers to adopt 27 new sugarcane varieties developed by the Kenya Sugar Research Institute, which are expected to enhance productivity, increase earnings, and reduce post-harvest losses.
However, the Kenya Union of Sugar Plantation and Allied Workers (KUSPAW) expressed skepticism regarding the government’s assurances, stating that workers have yet to receive clear timelines for the payment of arrears. KUSPAW Chemelil Branch Assistant Secretary James Omondi criticized the PS’s announcement, arguing that it fails to address the hardships faced by employees since the mills’ leasing to private investors on May 7, 2025. Omondi described the government’s stance as unsatisfactory.
The union also contested claims regarding worker absorption at Chemelil Sugar Company, asserting that only about 399 employees were retained by the investor, contrary to previous figures presented during the transition. Omondi further argued that some workers were declared redundant before receiving their dues, violating the Employment Act’s requirement for full settlement of entitlements prior to redundancy.
He called for President William Ruto’s intervention to expedite the payment of the Sh1.9 billion arrears, warning that delays could exacerbate unrest in the sugar sector.
