The nationwide strike by sugar factory workers has been suspended following talks between the Ministry of Agriculture and the Kenya Union of Sugar Plantation and Allied Workers (KUSPAW).
The industrial action, which began on Thursday, January 29, had affected Muhoroni, Nzoia, Sony, and Chemelil sugar factories.
Workers were demanding payment of unpaid salary arrears and terminal benefits amounting to Ksh10.8 billion.
Following the negotiations, the ministry and the union agreed that workers would resume duty immediately while the payment processes are finalised.
To ease immediate hardship, the Ministry of Agriculture has pledged to release Ksh1 billion within the next two weeks.
Read More
The remaining arrears will be settled in phases through the Supplementary Budget and subsequent budgets, subject to parliamentary approval.
According to the ministry, the payments will cover salary arrears, redundancy dues, pensions, and other terminal benefits.
Agriculture Cabinet Secretary Mutahi Kagwe acknowledged the difficulties faced by workers, and clarified the source of the obligations.
"We acknowledge the hardship faced by sugar workers and apologise for delays in meeting earlier commitments, which have been due to fiscal constraints.
"The outstanding arrears are obligations of the Government arising from the transition process and not liabilities of the private millers currently leasing and operating the factories. Industrial action targeting third parties only disrupts operations and delays sector recovery," he said.
KUSPAW General Secretary Francis Wangara welcomed the Government’s renewed commitment, noting the plight of workers who had exited service.
"The union has suspended the strike in good faith as it monitors the release of funds and implementation of agreed milestones. We also raised concerns over delayed union deductions, employment terms in some factories, non-compliance with transition arrangements, and alleged intimidation of union officials, which have been noted for follow-up," he said.
Kenya Sugar Board CEO Jude Chesire affirmed ongoing engagement with millers and unions to maintain stability and ensure factories remain operational.
Kagwe condemned acts of property destruction and unlawful conduct while reaffirming the right to peaceful demonstrations, directing security agencies to restore normalcy.
This comes days after the Kenya Sugar Board attributed potential sugar price increases to a challenging production cycle that began in 2025 and has extended into early 2026.
In a statement, KSB said national sugar production declined to 613,000 metric tonnes in 2025, meeting only 51% of the 1.2 million MT domestic demand.
This represents a significant drop from the previous year's output of 815,000 MT; a 25% decrease that officials say was anticipated as the industry underwent major structural reforms.
The Board explained that the reduced output resulted from multiple factors rather than a single cause, combining weather challenges, strategic protection of future cane crops, and structural industry reforms aimed at long-term sustainability.
A substantial portion of the 2024 harvest depleted mature cane stocks, leaving much of the 2025 crop in developmental stages.
This required the temporary closure of seven sugar factories in the Lower Eastern and Western regions to allow cane to reach optimal maturity, ensuring higher sucrose content and protecting farmers' future income.
Four state-owned sugar factories were initially closed to facilitate leasing to private investors.
These facilities then underwent extensive renovations and rehabilitation costing approximately Ksh 12.5 billion, resulting in a roughly 9-month reduction in milling capacity.
Kwale Sugar also remained non-operational during 2025, though these measures are expected to modernize the industry and secure reliable future production.
Further, dry spells in key growing zones during late 2025 and early 2026 slowed cane development, reduced tonnage per hectare, and affected factory throughput, temporarily increasing production pressure.
Official KNBS statistics show that production fell from 758,302 tonnes in the corresponding period of the previous year.
