As part of continuous efforts to restore the faltering sugar industry, the government has approved the plan to lease out four state-owned sugar factories: Nzoia, Chemilil, Muhoroni, and Sony. 

This plan has the support of two significant unions that represent sugarcane farmers and workers.

After meeting with Sen. Mutahi Kagwe, cabinet secretary for agriculture and livestock development, Sen. Mutahi Kagwe, and the leasing committee, which is headed by the CEO of the Kenya Sugar Board,  Jude Chesire, the Kenya National Federation of Sugarcane Farmers and the Kenya Union of Sugar Plantation and Allied Workers (KUSPAWU) endorsed the action.

CS Kagwe reassured the unions that no final decision would be made without input from farmers, workers, governors, MPs, and other key stakeholders.

“We cannot do this arbitrarily. There is leadership in these areas that cannot be ignored. Nobody will be allowed to take over the factories before they are properly vetted,” said Kagwe.

The Cabinet Secretary also affirmed that all pending payments to farmers and workers will be settled before any lease agreements are finalised. Lawrence Kibet, Director General at the National Treasury, echoed this, confirming that funds will be available to clear arrears.

Farmers’ Federation Secretary General, Kilion Osur Anyango, said the leasing model had already received support during public participation under the Sugar Taskforce, which was led by former CS Peter Munya and then Kakamega Governor Wycliffe Oparanya.

“Farmers were clear that we don’t want privatisation. Leasing will allow farmers to benefit, just as they do under private millers who pay promptly,” said Anyango, urging the Kenya Sugar Board to standardise weighbridges to promote transparency.

KUSPAWU General Secretary Francis Wangara welcomed the government’s commitment to protecting workers’ rights and called for strict adherence to existing collective bargaining agreements (CBAs) during the transition period.

“No employee should earn less than what they earn now. The one-year job security window is a welcome move,” he said.

The unions also demanded the creation of a Sugar Arbitration Committee to resolve industry-related conflicts, many of which have prolonged the lease process through legal actions.

CS Kagwe continued by stating that the ministry has finalised new regulations to implement the Sugar Act and stabilise and reform the industry.

Source: Capitalfm

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