Government, sugar workers’ union reach deal as strike is suspended

Sugarcane trucks at Chemelil sugar factory/ Faith Matete 

The nationwide strike by sugar factory workers has been suspended following high-level talks between the government and the Kenya Union of Sugar Plantation and Allied Workers (Kuspaw).

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

The breakthrough came after crisis talks held at Kilimo House in Nairobi, chaired by Agriculture Cabinet Secretary Mutahi Kagwe. 

The meeting brought together senior officials, including Agriculture Principal Secretary Kipronoh Ronoh, Kenya Sugar Board CEO Jude Chesire, Harun Khator, chairperson of the Sugar Transition Committee and Kuspaw officials led by general secretary Francis Wangara. 

Following what officials described as “extensive deliberations,” the parties agreed to suspend the strike with immediate effect, allowing workers to return to duty as payment mechanisms are finalised.

Under the agreement, the government will release Sh1 billion within the next two weeks to cushion workers facing acute financial hardship.

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

Payments will be made in phases and will cover salary arrears, redundancy dues, pensions and other terminal benefits. 

In a statement, Kagwe acknowledged the hardship endured by sugar workers and apologised for delays in meeting earlier commitments, attributing the setbacks to fiscal constraints. 

He also clarified that the outstanding arrears are obligations of the government arising from the sugar sector transition process and not liabilities of private millers currently leasing and operating the factories.

“The arrears are owed by the government, not private millers,” Kagwe said, emphasising that private investors were not party to the agreements that created the debts. 

He cautioned that directing industrial action at private millers or factory operations does not resolve the root cause of the dispute and only serves to prolong worker suffering and disrupt sector recovery. 

The CS appealed to Parliament, particularly legislators from sugar-growing regions, to support and fast-track the required budgetary allocations to conclusively resolve the matter. 

“As government, we accept responsibility for these debts. We will push Parliament hard to resolve this through the Supplementary Budget so that the sugar sector is stabilised once and for all,” he said.

Wangara welcomed the renewed government commitment, noting that many workers who exited service are living in severe hardship, with no housing, medical cover or stable livelihoods. 

“We have agreed to suspend the strike in good faith as we monitor the release of funds and implementation of the agreed milestones,” he said. “Workers have suffered long enough, and this issue must now be resolved conclusively.”

The union also raised additional concerns, including delayed remittance of union deductions, poor and exploitative employment terms in some factories, non-compliance with agreed transition arrangements particularly on worker retention and alleged intimidation of union officials. 

These matters were flagged for urgent follow-up with millers and investors. 

Chesire reaffirmed the board’s commitment to continued engagement with both unions and millers, urging all parties to maintain stability to allow factories to operate and generate revenue critical to sustaining the sector. 

Kagwe further condemned the destruction of property, intimidation and other unlawful acts witnessed during the strike, while reiterating that peaceful demonstrations remain protected under the law.

He said security agencies have been directed to restore and maintain normalcy in all affected areas.

The Ministry of Agriculture, Kenya Sugar Board, National Treasury and Kuspaw will continue to work closely to track disbursements, ensure compliance by millers and address outstanding labour issues, including the possible reinstatement of suspended employees.