Kenya pledges to clear salary arrears owed to workers of leased sugar mills 

KENYA – Kenya has committed to clearing Kes 1.9 billion (US$14.7M) in verified salary arrears owed to workers of four former state-owned sugar mills, marking a renewed effort to resolve legacy liabilities following the leasing of the factories to private investors. 

Agriculture Principal Secretary Kiprono Ronoh said the arrears had been fully audited and provided for in the national budget, allowing the government to begin payments to employees who were originally hired by the State before the mills were leased to private millers. 

Speaking at Chemelil Sugar Company in Kisumu, Ronoh said the government had taken responsibility for part of the liabilities arising from the transition. “During the handover of the four sugar mills, the government undertook to absorb part of the liabilities, including employee salary arrears,” he said. 

“The audited amount stands at Kes 1.9 billion, and the funds have now been set aside to ensure all verified arrears are paid,” Ronoh added. He said statutory deductions owed to workers were also being audited and would be settled once the verification process is complete. 

Ronoh noted that employees who were not absorbed by the new millers would be prioritised during the payment of the audited arrears. He urged workers to remain patient as the government concludes the process, saying the leasing programme was intended to stabilise the sugar sector and attract fresh investment. 

According to the PS, more than 80% of the workforce had already been absorbed by the new operators, with employment expected to grow significantly as production ramps up.  

“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, calling on investors to prioritise youth employment. 

Ronoh also assured sugarcane suppliers and farmers that their outstanding debts had been audited and were being addressed. He said most farmers’ arrears had already been cleared, with only limited balances remaining under specific millers.  

He further encouraged farmers to adopt 27 new sugarcane varieties developed by the Kenya Sugar Research Institute, saying the varieties would boost yields and reduce post-harvest losses. 

However, the Kenya Union of Sugar Plantation and Allied Workers (KUSPAW) expressed concern over the lack of clear payment timelines.  

KUSPAW Chemelil Branch Assistant Secretary James Omondi said workers continued to face hardship following the leasing of the mills on May 7, 2025. 

“Employees have gone through extreme challenges following the leases, and there is no clear commitment on when these arrears will be paid,” Omondi said, describing the government’s assurances as unsatisfactory. 

The union also disputed claims regarding worker absorption at Chemelil Sugar Company, saying only about 399 employees had been retained. Omondi further said some workers were declared redundant before receiving their dues, which he said contravened the Employment Act.  

He appealed for intervention by President William Ruto to fast-track payment of the Kes 1.9 billion arrears, warning that continued delays could deepen unrest in the sugar sector. 

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