The Kenyan government has concluded the leasing process of four state-owned sugar factories—Nzoia, Chemelil, Sony, and Muhoroni—and has committed to clearing Sh. 6 billion in outstanding payments to farmers by July this year, reports The Saturday Standard.
The Ministry of Agriculture and Livestock Development announced that the move aims to resolve long-standing salary arrears for sugarcane workers and ensure a stable future for both growers and the sugar processing industry.
“After extensive discussions, we reached an agreement with the Kenya Union of Sugar Plantation and Allied Workers (KUSPAW) to protect the rights and welfare of factory workers,” said Cabinet Secretary Mutahi Kagwe.
As part of the deal, the government will clear all outstanding dues owed to both farmers and workers before transferring operations to private millers. This is seen as a key step in reviving the struggling sugar sector.
Last year, the government disbursed more than Sh. 1.7 billion to sugarcane farmers to settle pending arrears from public mills, signaling its commitment to resolving longstanding financial issues in the industry.
The leasing of the factories is expected to bring in private sector efficiency, with the goal of boosting productivity and ensuring timely payments to farmers.
