Sugar workers suspend strike after government, unions reach deal

The nationwide strike by sugar factory workers has been suspended following high-level crisis talks between the government and unions, paving the way for workers to return to duty as payment of long-standing arrears is finalised.

The strike, which began on January 29, affected operations at Muhoroni, Nzoia, Sony and Chemelil sugar factories over unpaid salary arrears and terminal benefits totalling Sh10.8 billion owed to serving and former employees.

The agreement was reached on Monday during a meeting at Kilimo House, chaired by Agriculture and Livestock Development CS Mutahi Kagwe, and attended by senior officials from the Ministry of Agriculture, the Kenya Sugar Board, the Sugar Transition Committee and the Kenya Union of Sugar Plantation and Allied Workers (KUSPAW).

Under the deal, workers agreed to immediately suspend the industrial action, with the government committing to release Sh1 billion within the next two weeks to ease hardship.

The remaining arrears will be settled through the Supplementary Budget and subsequent budgets, subject to parliamentary approval.

“As a government, we accept responsibility for these debts. The arrears are owed by the government, not private millers. We will push Parliament hard to resolve this matter conclusively through the Supplementary Budget so that the sugar sector is stabilised once and for all,” Kagwe said.

Kagwe emphasised that private millers leasing and operating the factories are not party to the arrears dispute, warning that directing industrial action at them only disrupts operations and prolongs worker suffering.

The CS appealed to Parliament, particularly MPs from sugar-growing regions, to support the allocation and fast-tracking of funds, while cautioning that industrial action targeting private lessees does not resolve Government-owed obligations.

KUSPAW General Secretary Francis Wangara welcomed the renewed government commitment but said workers would closely monitor implementation of the agreed timelines.

“We have agreed to suspend the strike in good faith as we monitor the release of funds and implementation of agreed milestones,” Wangara said.

“Workers have suffered long enough, and this matter must now be resolved conclusively.”

The union also raised concerns over delayed remittance of union deductions, poor employment terms in some factories, alleged intimidation of union officials and non-compliance with transition agreements, issues that were flagged for urgent follow-up.

The Ministry of Agriculture, the Kenya Sugar Board, the Treasury and KUSPAW said they will maintain close coordination to track disbursements, compliance by millers and resolution of outstanding labour issues, as security agencies move to restore normalcy in affected areas.