Kenya Sugar Workers Union threatens court action over unpaid arrears in State sugar factory leasing 

KENYA – The Kenya Union of Sugarcane Plantation and Allied Workers (KUSPAW) has warned that it will seek legal action to block the government’s plan to lease state-owned sugar factories if salary arrears for workers remain unsettled. 

KUSPAW Secretary General Francis Wangara stated that the leasing process will not proceed unless the government clears KES 4.7 billion in overdue wages owed to workers. 

Additionally, he revealed that the factories owe the union KES 10 million in unremitted deductions from employees’ salaries. 

The union has formally written to Agriculture Cabinet Secretary Mutahi Kagwe and the Principal Secretary, urging swift resolution of the issue to avoid a prolonged court battle. 

“We have made it clear that the leasing shall not proceed unless the outstanding debt is settled. We have no objection to the program, but we want the factories handed over to investors with a clean balance sheet,” Wangara emphasized. 

He warned that if their demands are not met, KUSPAW will move to court to halt the leasing process.  

The union is also demanding representation on the leasing committee to ensure that workers’ interests are safeguarded before new investors take over the factories. 

Wangara further stressed that the union would not tolerate any form of discrimination against sugar sector workers, who have suffered months without pay. 

The government has put up Nzoia, South Nyanza (SONY), Chemelil, and Muhoroni sugar companies for lease, with interested investors required to submit bids by March 21, 2025. Successful bidders will then be announced following an evaluation process. 

Currently, the government holds a 98.8% stake in Sony Sugar, 97.93% in Nzoia Sugar, 96.22% in Chemelil Sugar, and 82.8% in Muhoroni Sugar.  

At the beginning of 2024, five state-owned sugar factories had a combined outstanding debt of KES 128.07 billion (US$1 billion). 

To support the struggling sugar mills, the Ministry of Agriculture approved a budget of KES 654 million (US$5.1 million) for the 2023/2024 fiscal year.  

Of this, KES 354 million (US$2.7 million) was allocated to settle debts owed to farmers at Nzoia, Muhoroni, Chemelil, and Sony Sugar. 

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.