Kenya pays US$2.7M to Nzoia Sugar workers as mill recovery continues
The payment forms part of efforts to clear long-standing worker arrears as Nzoia Sugar rebuilds operations following a major factory rehabilitation.
KENYA – Kenya’s National Assembly Speaker Moses Wetang’ula has announced that the government has paid Kes 350 million (US$2.70M) towards outstanding dues owed to employees of Nzoia Sugar Company.
Wetang’ula said the payment would settle part of the long-running arrears owed to workers who have for years sought payment of outstanding salaries and other benefits.
The payment follows prolonged disputes over unpaid dues at Nzoia Sugar and other state-owned sugar companies. In January, workers at four leased sugar factories, including Nzoia, Chemelil, Muhoroni and South Nyanza, demanded payment of arrears and terminal benefits estimated at Kes 10.8 billion.
The government had committed to settling workers’ arrears as part of leasing arrangements for the four sugar companies. Parliamentary records show that the State agreed to make phased payments towards workers’ salaries and outstanding dues.
Wetang’ula also linked the payment to the revival of Nzoia Sugar, saying the mill’s return to operations had restored an important source of income for sugarcane farmers in the region.
Nzoia Sugar resumed cane-crushing operations in January 2026 following rehabilitation of its factory. Since reopening, the company has paid farmers more than Kes 700 million for cane deliveries.
Company officials said the rehabilitation focused on restoring critical infrastructure that had deteriorated following years of inadequate maintenance. Repairs were carried out on the main power turbines, mill turbines, boiler tubes, roller shells and milling units to stabilise production and reduce breakdowns.
Additional upgrades included improvements to cane preparation equipment, evaporator sets, sugar and water pumps, as well as automation of several factory sections.
Nzoia Sugar chief executive Sohan Sharma said the company had processed more than 292,980 tonnes of sugarcane since reopening.
The development comes as the Kenya Sugar Board conducts an audit of informal sugar imports to establish the volumes traded, routes used and factors driving cross-border sugar flows.
The regulator said Kenya remained a net sugar importer, producing about 72% of domestic requirements in 2024. It said the market remained vulnerable to illegal sugar inflows because of porous borders, weak traceability systems and significant price disparities.
The audit is examining informal sugar movements amid concerns over market distortions and revenue losses. Meanwhile, the government’s payment to Nzoia Sugar workers and continued rehabilitation of the mill form part of efforts to support the company’s operations and sugarcane value chain.
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