Former Mumias Sugar workers during the protest/HANDOUTFormer Mumias Sugar Company workers now want the new investor Sarrai Group to clarify its stance on the Sh2.3 billion arrears owed to ex-employees.
The workers led by their chairman, Patrick Mutimba, demonstrated yesterday in Mumias to demand their pay.
Our calls and texts to the top management of the company were not responded to by the time of publication of this article. However, a senior manager at the company who did not want to be named told the Star that the management wasn't aware of the protests by former staff.
He said that the staff could have been responding to recent communication by Treasury that the government was paying staff in Muhoroni, Sony, Nzoia, and Chemilil their arrears, but Mumias was not on the list.
"They may have been reminding the President that he promised to help sort out their issues, but they had not been included," he said. "
"The only support the president has given Mumias is ordering the withdrawal of all court cases filed against the company," he added.
Mr Mutimba regretted that despite persistent calls for resolution of their arrears, the company has shown no intent to address their issue, which they said was very critical.
The workers allege that when Sarrai Group took over Mumias Sugar, it inherited all the liabilities that included their salary arrears.
“The money we are asking for, once paid, would significantly transform our lives and families at the same time restore hope and dignity,” said Mutimba.
Sarrai Group has been in Mumias Sugar for three years now, having been announced as the new investor by the then Receiver Manager PVR Rao in December 2021.
“Sarrai’s failure to uphold its responsibilities not only impacts we the former workers negatively but also undermines the broader economic and social framework of the region,” said Mutimba.
“The lack of investment in cane development has contributed to the shutdown of neighbouring factories, intensifying competition for limited resources and destabilizing the sugar industry in Western Kenya."
The government was the biggest shareholder in Mumias Sugar Company before it went under receivership. The government has been addressing workers’ arrears in other struggling sugar companies, including Nzoia Sugar, Muhoroni Sugar, Sony Sugar, and Chemilil Sugar.
“Right now people are shopping for their families because it is Christmas, but we have no money to shop. Mumias Sugar has been milling for more than two years, but the management has refused to pay us our money,” said Mutimba.
Mr Mutimba said they lost more than 80 of their members for the past three years. Some of them were found dead inside their houses by family members.
Hezron Kongani said they will not tire of demanding their pay.
“I know quite a number of our members whose children have dropped out of school due to lack of fees. People are dying because of depression but the government and Sarrai are silent on our arrears,” said Kongani.
"Our politicians are nowhere to be seen, yet we elected them. They will be back seeking our votes yet now they are silent as we continue to languish in poverty."
In 2023, the workers withdrew the case they had filed in court seeking payment of their arrears. Mutimba said they expected, after withdrawing the case, the new investor would have space and time to revive the factory and settle their arrears.
"We withdrew a court case in good faith, believing that Sarrai Group, the new investor, would rejuvenate the company and honor its obligations. With the takeover, there was hope that Sarrai would not only revive operations but also settle outstanding arrears inherited as part of the company's liabilities,” Mutimba said.
Recently, the Ministry of Agriculture released Sh546 million towards sugar reforms in the four struggling sugar mills, namely, Nzoia Sugar, Muhoroni Sugar, Sony Sugar, and Chemilil Sugar.
The Principal Secretary, State Department for Agriculture, Dr Kipronoh Rono, in a letter to the Managing Director of Agricultural Food Authority dated December 5th, 2024
“We have released Sh546 million, being the appropriated budget in the Financial Year 2024/2025 for Support to Sugar Reforms. The balance of Sh96 million to Nzoia Sugar Company to pay one-month salary for workers and maintenance of the factory,” read the letter.
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