The Kenya Sugar Board has disbursed over Sh600 million to sugarcane factory workers in a significant move aimed at clearing longstanding debts. This payout is part of a broader government initiative to revitalise the struggling sugar sector by leasing out four state-owned factories.
The payment brings the total amount disbursed to workers since last year to over Sh1.2 billion, according to the Board’s Chief Executive Officer, Jude Chesire. The latest funds reduce the outstanding debt from Sh5.6 billion to Sh5 billion, pending final audit verification.
“This disbursement reflects our ongoing commitment to settle debts owed to both employees and farmers,” Chesire said. “It is also a demonstration of the government’s determination to restore the viability of the sugar industry.”
The disbursement coincides with the government’s leasing programme, which aims to bring in private investors to run the state-owned factories more efficiently. The 30-year lease period, which is non-renewable, is designed to encourage long-term investment. The terms of the lease include a review every five years and an exit clause to ensure accountability and proper factory management.
Chesire reassured stakeholders that the leasing arrangement would not compromise transparency or governance. “The regulations guiding this process have undergone national validation and will be gazetted soon. These include provisions that guarantee good management practices and protect the interests of workers and farmers,” he said.
Addressing public concerns over the length of the lease, Chesire explained that the three-decade duration offers investors enough time to implement meaningful changes, recoup investments, and ensure the sustainability of operations. “It’s a long-term solution aimed at benefiting all stakeholders—employees, farmers, and surrounding communities,” he added.
The revitalisation of the sugar sector is seen as crucial for Kenya’s agricultural economy, especially in western Kenya where sugarcane farming supports thousands of households. The recent disbursement is expected to provide financial relief to workers while paving the way for broader reforms in the industry.
