Kenya orders redundancy notices for state-owned sugar firm workers as leasing to private investors concludes 

KENYA – Kenya, through the Ministry of Agriculture, has instructed the management of key state-owned sugar companies to issue redundancy notices to employees.  

This move follows the completion of leasing the companies to private investors under the public sugar sector restructuring programme. 

The directive, issued to the managing directors of Nzoia Sugar Company, South Nyanza Sugar Company, and Chemelil Sugar Company, as well as the joint receiver manager of Muhoroni Sugar Company, requires formal notification to all affected employees.  

These notices must comply with Section 40 of the Employment Act, 2007, and respective Collective Bargaining Agreements (CBAs). 

According to the ministry, the letters should specify the reasons for termination, outline redundancy entitlements under the law and CBAs, and be copied to the relevant County Labour Officer.  

Management has also been instructed to assure employees that all dues and lawful benefits will be fully settled in accordance with statutory provisions. 

The leasing process, first announced in 2020 as part of efforts to revive the struggling sugar sector, has now been completed.  

Under the arrangement, Nzoia Sugar Company has been leased to West Kenya Sugar Company, Chemelil Sugar Company to Kibos Sugar & Allied Industries Limited, Sony Sugar Company to Busia Sugar Industry Ltd, Muhoroni Sugar Company to West Valley Sugar Company, and Miwani Sugar Company to Pandhal Industries. 

Authorities say the private investors are expected to inject capital, modernize equipment, and settle outstanding liabilities to restore the competitiveness of the sector.  

The government maintains that this strategy is essential to returning the millers to profitability and safeguarding the livelihoods of sugarcane farmers. 

However, the restructuring has sparked concerns over job losses and the impact on thousands of workers who depend on the sugar industry, a major employer in Western Kenya. Chronic inefficiencies, high production costs, and outdated machinery have long undermined the sector’s viability. 

Nzoia sugar ex-boss’s graft case adjourned 

Meanwhile, the Bungoma Anti-Corruption Court has adjourned the hearing of a corruption case involving former Nzoia Sugar Company Managing Director Godfrey Sifuna Wanyonyi and seven others.  

The case, linked to alleged embezzlement of Kes 11 million in 2018, was postponed after one of the accused failed to appear in court citing medical reasons. The charges include conspiracy to commit an economic crime, abuse of office, and fraudulent acquisition of public funds. 

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