A fresh standoff has emerged between the Central Organisation of Trade Unions (COTU) and the Ministry of Labour over the planned redundancy of workers in four state-owned sugar mills. The dispute centers on the government’s restructuring efforts targeting Nzoia, South Nyanza (SONY), Chemelil, and Muhoroni sugar companies.
In a confidential letter dated August 12, Agriculture Principal Secretary Kiprono Ronoh instructed the millers’ management to issue redundancy notices as part of a government leasing programme. The PS directed that employees must be informed of their termination reasons, entitlements under the Employment Act and Collective Bargaining Agreements (CBAs), and assured them of full payment of dues.
However, to cushion the fallout, the Labour Ministry later wrote to COTU on September 1, inviting the union to nominate a representative to a tripartite committee. The committee was tasked with reviewing the legality of the layoffs, ensuring compliance with labour standards, and guiding the transition process.
COTU, led by Secretary General Francis Atwoli, flatly rejected the invitation in an October 3 response. Atwoli accused the Labour Ministry of betraying its central mandate of job creation by siding with employers to push through job cuts.
“It is deeply concerning that the Ministry, whose central mandate is employment creation, would convene a meeting to discuss redundancy at a time when the unemployment crisis in our country is acute,” said Atwoli.
The union instead called for fresh discussions on expanding employment opportunities. Atwoli further demanded the repeal of the redundancy clause, introduced into Kenyan law in 1994 under pressure from the World Bank and IMF, arguing it is outdated.
The clash threatens to stall the government’s sugar sector reforms, already strained by debt, mismanagement, and declining production. With thousands of households dependent on the struggling mills, the fallout sets up a looming political showdown between the state and Kenya’s most powerful labour movement.
