Agriculture Cabinet Secretary Mutahi Kagwe has reassured workers in state-owned sugar factories that the government will clear all outstanding dues owed to them, even as Kenya faces tight budgetary conditions.
Speaking after meeting representatives from the Kenya Union of Sugar Plantation and Allied Workers, the Kenya Sugar Board, and officials from the four leased public sugar mills, Kagwe emphasized that the State remains committed to protecting the welfare of both employees and sugarcane farmers.
“The government is not refusing to pay,” Kagwe said, adding, “We are simply working within the fiscal realities the country faces. However, every shilling owed to workers will be honoured. This office remains open, and we are fully committed to ensuring all workers and farmers receive what they are due.”
The meeting, also attended by Principal Secretary Paul Ronoh, focused on the progress of the ongoing leasing program of state-owned sugar factories. Kagwe revealed that the government has already begun disbursing payments to workers and farmers, clearing long-standing arrears in phases.
He noted that the revival of the sugar industry is one of the government’s top priorities. The leasing of public sugar mills, he explained, is part of a broader plan to restore efficiency, competitiveness, and sustainability in the sector—while safeguarding jobs and livelihoods in the sugar belt.
According to Kagwe, most workers from the affected factories will be reabsorbed by the private firms now managing the mills. Those exiting the sector will receive retirement or severance packages in line with labour laws.
The CS also directed private investors leasing the factories to strictly adhere to their contractual obligations, ensuring transparency and accountability in the management of the mills. He reiterated that the government will continue to monitor operations closely to guarantee a smooth transition and a strong revival of Kenya’s sugar industry.
