Sugar workers, suppliers demand Ksh2.7B payout amid financial struggles

Sugar workers and suppliers in Nyanza have implored President William Ruto to act on a Ksh2.7 billion fund designated for sugar-sector reforms, as delayed payments have plunged hundreds into financial hardship. Reminiscent of the transition of factories to private investors, the stakeholders—including those from Chemelil, Muhoroni, and other state-owned sugar factories—lamented the lack of salary arrears, terminal dues, and unremitted pension contributions.

James Omondi, the Kenya Union of Sugar Plantation and Allied Workers Chemelil branch secretary, reported that workers had only received partial payments, leaving many on the estates without means of survival. He emphasized how these delays have adversely affected workers' families, with children dropping out of school due to inability to pay fees and maintain upkeep.

The union official appealed to President Ruto to authorize the National Treasury to release the Ksh2.7 billion allocation to the Agriculture ministry for processing payments to former workers. Omondi also pointed out that the memorandum of understanding between the Government and workers, signed on May 7, 2025, pledged the State's commitment to addressing salary arrears and other emoluments arising from the transition process.

Suppliers of goods and services to the sugar factories, such as Mercy Julian, reported that they had submitted their claims to the Agriculture ministry but had yet to receive any updates on the payment process. Julian also mentioned that suppliers had encountered significant challenges, having borrowed from financial institutions to continue their operations, now facing debt recovery proceedings after failing to repay the loans.

The audit of supplier claims stood at 48 percent complete, while the audit concerning workers had reached 100 percent completion. Omondi noted that workers at Chemelil and Sonny Sugar companies had suffered substantial salary reductions. James Owiti, a former Chemelil Sugar engineering supervisor who retired in June 2020, expressed that he had not received his pension to date.

He added that he had endured considerable stress due to the delay. The workers and suppliers implored the President and the Agriculture ministry to expedite the payment process, warning that continued delays could jeopardize the livelihoods of former workers, suppliers, and their employees.