State-owned sugar millers that were recently leased to private investors have received approval to lay off all their employees as their factories and land are transferred to the new managers.
Agriculture Principal Secretary Kipronoh Ronoh directed the managing directors of the four firms—Chemelil, Muhoroni, Sony and Nzoia—to issue redundancy notices to all workers. The move is expected to affect more than 5,000 employees. Those who wish to continue under the new investors will be required to reapply for their positions.
Muhoroni Sugar Company factory in this picture taken on May 27, 2019.
Photo credit: Ondari Ogega | Nation Media Group
He stated that the notices must be in writing, clearly stating the reasons for termination and outlining the employees’ entitlements, with copies also sent to the county labour officer.
“Employees should also be informed that all their dues and lawful entitlements will be fully paid in accordance with the provisions of the law and the CBAs [collective bargaining agreements],” added the PS.
The directive is likely to spark tension as the government is yet to settle accumulated workers’ arrears amounting to Sh5.23 billion. It remains unclear whether these arrears—committed to be cleared within six months of the leasehold—will be factored into the retrenchment packages.
Already, Sony MD Martine Dima has issued termination notices to all employees of the Migori-based miller.
Tractors deliver cane at Sony Sugar Company. (Inset) the firm's new Managing Director Martine Dima.
Photo credit: Nation Media Group
“The management ... wishes to notify all employees that their services with the company will terminate due to redundancy on 31st October 2025,” reads the memo by Mr Dima.
With the leasing of Sony—established in 1976—to Busia Sugar Industries, the State-owned miller has been renamed New Sony 2025. The new investor will run the company for 30 years.
Nzoia Sugar was leased to West Kenya Sugar, Chemelil to Kibos Sugar & Allied Industries and Muhoroni to West Valley Sugar.
For thousands of employees across the sugar belt, the looming mass layoffs present an uncertain future. Families that have depended on the jobs for decades now face the prospect of unemployment in regions already grappling with high poverty rates and limited alternative livelihoods.
Local economies built around these factories—traders, transporters, and small businesses—will inevitably feel the ripple effects of the restructuring.
However, for some long-serving workers, the redundancy could bring a windfall. With service gratuities and terminal benefits factored in, some employees, particularly those nearing retirement, are expected to walk away with substantial packages.
But there is still anxiety about whether the government will honour its earlier commitment to clear arrears owed to workers.
