The Ministry of Agriculture and Livestock has begun clearing outstanding payments owed to workers in public sugar factories while issuing strict operational directives to ensure accountability in the revived sugar sector.
In a statement issued on Tuesday, November 4, Cabinet Secretary Mutahi Kagwe reaffirmed the government's commitment to honoring all workers' dues, despite prevailing fiscal pressures, and assured that settling arrears remains a top priority for the administration.
"We are not refusing to pay. We are working within fiscal realities, but every shilling due will be honoured," CS Kagwe said during a meeting with the Kenya Union of Sugar Plantation and Allied Workers (KUSPAW), the Kenya Sugar Board, and representatives of the four leased sugar factories.
To ensure accountability and smooth operations across the sector, CS Kagwe issued several critical directives to the private operators who have taken over the state-owned mills.
These directives include the immediate commencement of full operations in all leased factories, urgent repairs at the facilities, and strict adherence to investment commitments by the lessees.
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In a move to safeguard farmers and maintain order in the sector, the CS directed that only the CEO of the Kenya Sugar Board may authorize weighbridge operations. He warned that unauthorized weighbridges will not be tolerated, and disruptions to cane zoning and harvesting areas will be firmly addressed.
"Weighbridges for millers operating outside their catchment areas shall be closed with immediate effect," Kagwe stated.
The CS revealed that the majority of workers from the leased factories will be re-absorbed by private operators who have taken over the mills, with others exiting through retirement.
He highlighted the importance of private sector participation in reviving the sugar industry, noting that the leasing of key state-owned factories marks a strategic shift toward sustainability, efficiency, and job creation.
The sugar sector has been grappling with financial challenges for years, resulting in accumulated debts to both workers and sugarcane farmers. The government's decision to lease out public sugar factories to private operators represents a strategic intervention aimed at restoring viability to the struggling industry.
The payment programme is already underway, with the government also beginning to clear longstanding dues owed to sugarcane farmers. This dual approach aims to address historical injustices while laying the groundwork for sustainable operations moving forward.
The CS reaffirmed that the government's agenda for the sugar belt is centered on restoring industry confidence, protecting livelihoods, and ensuring fair and transparent operations throughout the value chain.
