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Fury over plan to fire hundreds of workers in four sugar factories
Kisumu Governor Anyang’ Nyong’o.
Kisumu Governor Anyang’ Nyong’o now wants the Principal Secretary for Agriculture to immediately withdraw what he terms a ‘callous redundancy approval’ that has put the jobs of hundreds of sugarcane factory workers on the line.
The Governor was dismayed by the unilateral and ‘ill-advised’ approval granted by the Principal Secretary for Agriculture, Kipronoh Ronoh, for mass redundancies at state-owned sugar factories.
His demand came a few days after Mr Ronoh directed the managing directors of the sugar factories – Sony, Chemelil, Muhoroni and Nzoia – to formally notify all staff about the termination of their contracts, affecting thousands, with previous reports saying about 5,000 workers were targeted.
Governor Nyong’o termed the decision a direct betrayal of the spirit and intent of the sugar sector revival programme.
“The leasing of these sugar mills was, in all intents and purposes, a strategy to revive the sector, enhance efficiency, and improve the welfare of all involved. The goal was to create a sustainable future, not to dismantle the existing workforce.
"This approval for mass layoffs fundamentally contradicts that promise, threatens to destabilize the very sector we are trying to save, and is a recipe for chaos,” said Governor Nyong’o.
He also questioned the timing of the decision by the PS, saying the national government has a long-standing commitment to pay the outstanding dues and arrears owed to these long-suffering workers.
“To approve their termination before this solemn debt has been settled is not only unjust but morally reprehensible. It adds a grave insult to an already painful injury,” said the Kisumu County boss.
He stated that a decision with such profound and devastating impacts on the economies of several counties was taken without any consultation with the respective county governments. To him, this was a blatant disregard for the principles of cooperative governance enshrined in the Constitution.
According to him, the sugar sector is a devolved function, and the livelihoods of thousands of citizens are not a matter to be decided unilaterally from an office in Nairobi.
“The Agriculture PS must immediately withdraw this callous redundancy approval, the National Treasury must release the funds to pay all outstanding arrears owed to the sugar factory workers, and an urgent meeting should be convened between the Ministry of Agriculture, the Council of Governors, and workers' representatives to chart a humane, consultative, and sustainable path forward for the workforce within the leasing framework,” said Governor Nyong’o.
His concerns and demands highlight the disappointment farmers, workers and other sugar stakeholders have with the government, which they feel has gone against an agreement reached before the leasing of the sugarcane firms.
When the Government of Kenya and the Kenya Union of Sugar Plantation and Allied Workers (KUSPAW) signed a Memorandum of Understanding (MoU) in May this year, it was presented as a solution to the long-delayed reforms in Kenya’s troubled sugar sector.
The document, signed at Kilimo House in Nairobi, pledged to safeguard workers’ rights while leasing the assets of the four companies to private investors.
But as the process unfolds, workers, unions, and labour economists say the government has failed to honour its own commitments, exposing thousands of families to economic ruin.
The MoU outlined that the Ministry would remain responsible for all unpaid salary arrears.
“The Ministry shall remain responsible for all unpaid salary arrears, pension contributions, and statutory deductions up to the lease handover date,” it states.
To reassure workers, it laid out a phased settlement plan:
“Sh1 billion to be paid to workers before takeover (Sh600 million to pay staff arrears and Sh400 million for salaries from May 2025). Sh1.5 billion to be released in July for the payment of staff salary and arrears. The government shall continue to pay salary arrears at the rate of Sh1.17 billion on a quarterly basis until 30th June 2026,” it adds.
The MoU also committed to protect jobs during the transition.
“The lessees shall retain the current workers for a maximum period of twelve (12) months from the commencement of the lease transition. During this period, workers shall remain under the existing terms and conditions of service,” it adds.
For those not retained, the MoU guaranteed an exit through the Voluntary Early Retirement Scheme (VERS) with notice or payment in lieu, accrued leave, severance in line with the Collective Bargaining Agreement in force, all salary and benefit arrears accrued, and a Certificate of Service.
Months later, the reality on the ground tells a different story. Workers at Chemelil, Muhoroni, Nzoia and Sony say they are still waiting for salaries and arrears.
On August 20, workers at Chemelil Sugar Company downed their tools and paralysed the maintenance of the company while demanding their arrears. Their counterparts in Muhoroni also vowed to resist redundancy notices issued by the miller if their demands are not met.
On August 15, 2025, management of the four sugar companies issued redundancy notices, informing employees they would be declared redundant by October 31, 2025.
The MoU also established a dispute resolution framework.
“Disputes arising from this MoU shall be referred to the Transition Committee. If unresolved, the matter shall be submitted to the Ministry of Labour and Social Protection for conciliation,” it reads.
But workers and analysts say this process is heavily tilted toward the state, offering no independent recourse for employees.
“The structure ensures factories keep running, which is critical for investors and the state. But the human cost is pushed to the margins. It’s a commercial transaction dressed in the language of labour protection,” said Dr John Otieno, the Kisumu-based labour economist.
The Kenya Union of Sugar Plantation and Allied Workers (KUSPAW) has now warned that it will set a firm deadline for the government to clear the Sh1.5 billion arrears owed to sugar sector workers ahead of the looming redundancy notices.
KUSPAW Secretary-General Francis Wangara said the union was waiting for a report from the transition committee before announcing the ultimatum.
The transition committee was tasked with auditing debts and human resource obligations to ensure every stakeholder in the value chain is considered, including outgoing employees.
“The committee has already toured the four state-owned millers and is preparing its report. Once it is tabled, we will set a deadline for the government to clear the arrears before the redundancy period ends,” Mr Wangara told Daily Nation.
Asked what would happen if the government ignored the deadline, Mr Wangara said: “For now, I won’t speculate. We will cross that bridge when we get there.”
