The government has unveiled a comprehensive plan to reskill and redeploy retrenched sugar workers as part of broader reforms aimed at restoring efficiency and sustainability in Kenya’s sugar sector.
Labour and Social Protection Cabinet Secretary Alfred Mutua confirmed the initiative while addressing the Senate Plenary on Wednesday, October 29, 2025, noting that the move was designed to protect livelihoods and ensure fair treatment of affected employees.
“To safeguard the livelihoods of retrenched workers, the Ministry has initiated plans to reskill and redeploy affected employees,” Mutua stated.
He explained that under a Memorandum of Understanding (MoU) signed on May 7, all workers would remain employed for 12 months from May 2025, with private lessees expected to absorb up to 80 per cent of the current workforce.
The announcement comes amid legal action filed earlier in October by thousands of employees from South Nyanza (Sony), Chemelil, Muhoroni, and Nzoia sugar companies challenging redundancy notices issued after the leasing of the mills to private investors.
Mutua defended the process, emphasizing that all retrenchments were being carried out in compliance with Section 40 of the Employment Act, which outlines procedures for redundancy, including prior notification, justification for termination, and payment of dues.
According to the CS, negotiations between the Ministries of Agriculture, Treasury, the Kenya Sugar Board, and the Kenya Union of Sugar Plantation Workers resulted in the MoU, ensuring fairness and transparency throughout the transition.
A total of 1,743 employees in Kisumu County have been affected by the restructuring of Chemelil, Muhoroni, and Miwani sugar companies. The government has already disbursed KSh1.8 billion in partial salary arrears, with an additional KSh3.8 billion and KSh15 billion in terminal dues set for payment by June 2026.
A transition committee comprising officials from key ministries, county governments, and union representatives is overseeing the process. Mutua assured the Senate that all workers’ rights will be protected under Article 41 of the Constitution, which guarantees fair labour practices.
