State-owned sugar companies recently leased to private investors have begun the process of laying off their entire workforce, raising concerns over widespread job losses in Kenya’s sugar belt, reports The Easatleigh Voice.
The government has authorised Chemelil, Muhoroni, Sony, and Nzoia sugar mills to issue redundancy notices as they transfer factories and land to new operators. Agriculture Principal Secretary Kipronoh Ronoh instructed the managing directors to formally notify staff of the termination of their contracts, a move affecting more than 5,000 employees.
Workers who wish to remain under the new management will have to apply afresh for their positions. Ronoh stressed that all notices must be in writing, state the reason for termination, and clearly outline employees’ entitlements. Copies are also required to be shared with county labour offices.
“Employees should also be informed that all their dues and lawful entitlements will be fully paid as provided by law and the CBAs (collective bargaining agreements),” the PS said.
The announcement comes as workers remain owed salary and allowance arrears amounting to Sh5.23 billion. Although the government had pledged to clear the arrears within six months of leasing the factories, it is unclear if these payments will be included in redundancy settlements.
Sony Sugar has already acted on the directive. In a memo, Managing Director Martine Dima informed employees that their contracts would end on October 31, 2025, due to redundancy. The Migori-based miller has since been leased to Busia Sugar Industries, rebranded as New Sony 2025, and will operate under the new name for the next 30 years.
Chemelil, Muhoroni, and Nzoia sugar companies have been leased to Kibos Sugar and Allied Industries, West Valley Sugar, and West Kenya Sugar, respectively.
The changes have left thousands of workers and their families facing an uncertain future. Local economies that depend on the factories—including traders, transporters, and small businesses—are also expected to feel the strain.
Some employees close to retirement may benefit from terminal dues and service gratuities, receiving substantial payouts. However, widespread anxiety remains over whether the government will honour its earlier commitment to settle salary arrears.
