Sugar worker's threaten protests over unpaid sh 10.8 billion arrears

Sugarcane plantation workers have threatened to strike in protest of the delayed payment of their dues.

The workers have accused the government of failing to honour agreements made during the leasing of four state-owned factories.

The Kenya Union of Sugarcane Plantation and Allied Workers (KUSPAW) said employees at Nzoia, Sony, Chemelil and Muhoroni sugar companies are yet to receive their arrears months after agreed payment deadlines lapsed.

Most of the employees are struggling to meet basic needs, the union says.

Speaking in Kisumu, KUSPAW secretary general Francis Wangara described the delay as unacceptable. He accused the government of frustrating workers through unfulfilled promises.

“At the time the factories were leased, we signed a clear memorandum of understanding with the government on how workers would be handled. All outstanding dues amounting to Sh10.8 billion were supposed to be settled by October 31 last year, but that has not happened,” Wangara said.

A structured payment plan was later agreed on under which Sh1.9 billion in salary arrears was to be paid in November 2025.

Part of the workers’ benefits was also scheduled for payment in December, together with a promised Sh1 billion partial settlement.

The union says none of these commitments has been fulfilled.

Wangara said they had earlier issued a strike notice but suspended the action after signing a return-to-work agreement with the Ministry of Agriculture.

The meeting, chaired by Agriculture PS Paul Ronoh had set February 2026 as the final deadline for settling the payments.

“That deadline has also passed without any payment being made,” Wangara said.

Many workers who exited employment after the factories were leased remain stranded in company housing and are facing severe financial hardship.

“Some of them cannot afford school fees for their children or even basic necessities. They are living in poverty while waiting for money that rightfully belongs to them,” Wangara said.

The union has blamed the National Treasury for the delay and called CS John Mbadi to explain why the payments have not been released.

“We have been told the matter is stuck at the Treasury. Workers deserve a clear explanation. The delay is causing unnecessary suffering,” Wangara added.

KUSPAW estimates that workers are collectively owed about Sh1.9 billion in pending salary arrears and exit packages following the privatisation of the factories.

Some employees were retained under the new management and remain on their payroll but most of the workers were left without employment and currently have no source of income.

“The exit packages and accrued benefits were meant for all workers, but those who left are suffering the most because they are completely without pay,” Wangara said.

The union has asked Central Organisation of Trade Unions secretary general Francis Atwoli to intervene by petitioning President William Ruto to ensure the matter is resolved.

Wangara warned that workers’ patience was running out and cautioned that protests could greet the President during his tour of Western region if the issue remains unresolved.

“If the President visits and finds workers demonstrating, it should not come as a surprise. They are only demanding what is rightfully theirs,” he said.

The four factories—Nzoia, Sony, Chemelil and Muhoroni—were leased out in 2025 as part of government efforts to revive the struggling sugar sector.

Under the lease arrangement, the government committed to settling historical debts owed by the mills, including workers’ arrears, while new investors took over operations without inheriting past liabilities.

However, the continued delay in paying workers’ dues has raised concerns about the transition process, with the union warning that industrial action could disrupt operations in an already fragile sector.

“If this situation leads to a work stoppage, the consequences for the sugar industry could be severe. The government must act quickly because these workers depend on this money for their survival,” Wangara said.