Western Kenya leaders oppose sugar factory layoffs, call move a betrayal

Leaders from Western Kenya have strongly opposed the planned dismissal of more than 5,000 workers from state-owned sugar factories under lease, describing the decision as a betrayal of promises made to farmers and employees, reports The Star.

The leaders, drawn from both government and opposition, said the layoffs contradict assurances given when the leasing programme was introduced to revive the struggling sugar sector. They warned that thousands of families now face uncertainty despite earlier commitments that jobs would be protected.

Kisumu Governor Anyang’ Nyong’o, Trans Nzoia Governor George Natembeya, and Awendo MP Walter Owino said the plan would damage livelihoods in a region already battling high poverty and unemployment.

Nyong’o criticised the approval by Agriculture Principal Secretary Kipronoh Ronoh, calling it “a hasty decision that risks creating unnecessary turmoil.” He added: “The leasing of these mills was meant to secure a sustainable future, not to destroy the existing workforce. Retrenchments go against that promise and could destabilise the sector further.”

Owino, whose constituency hosts Sony Sugar, said the government had initially pledged that leasing would modernise the factories, provide capital and protect jobs. “We were told farmers would be paid on time and jobs would continue. Nobody mentioned that workers would be sent home,” he said. “If layoffs are unavoidable, then every worker must first be fully compensated.”

Natembeya warned that the decision would have serious social and economic consequences in the sugar belt. “I cannot watch as thousands of families are pushed deeper into poverty under the name of restructuring. What we need is a transparent process that revives the sector while keeping people in work,” he said.

The leaders demanded that the redundancy notices be withdrawn immediately and called for urgent consultations between the Ministry of Agriculture, the Council of Governors and workers’ representatives.

On August 15, Agriculture PS Ronoh directed the managing directors of Sony, Chemelil, Muhoroni and Nzoia sugar companies to issue termination notices to their staff in line with Section 40 of the Employment Act, 2007, and the existing collective bargaining agreements.

The notices, set to take effect on October 31, 2025, affect more than 5,000 employees. Workers are expected to receive redundancy packages and other entitlements under the law.

However, many employees are still owed salary and allowance arrears estimated at Sh5.23 billion, which the government had earlier pledged to clear within six months of the leases.

Instant Analysis: The law requires that all employees declared redundant be paid their full dues, including severance packages and benefits under Section 40 of the Employment Act and relevant CBAs. The key challenge for the government and investors will be to conduct the process transparently and settle arrears quickly to prevent unrest and instability in the sugar belt.

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