The Kenyan government has announced plans to reskill and redeploy workers affected by the restructuring of state-owned sugar companies, aiming to restore efficiency and sustainability in an industry beset by financial and operational challenges.
Labour and Social Protection Cabinet Secretary Alfred Mutua revealed the initiative while appearing before the Senate Plenary on Wednesday, October 29.
“To safeguard the livelihoods of retrenched workers, the Ministry has initiated plans to reskill and redeploy affected employees,” Mutua said.
“In accordance with the MoU, all workers will remain in employment for 12 months from May 2025, during which lessees will absorb up to 80 per cent of the current workforce.”
Earlier in October, thousands of workers at Sony, Chemelil, Muhoroni, and Nzoia sugar factories filed legal action following redundancy notices issued after the leasing of mills to private operators. The employees claimed discussions over terminal benefits and entitlements were still ongoing.
Mutua defended the layoffs, emphasizing that they were carried out in compliance with Section 40 of the Employment Act, which mandates proper notification, justification, and payment of all dues.
“Negotiations between the Ministry of Agriculture, the Kenya Sugar Board, the National Treasury, and the Kenya Union of Sugar Plantation Workers resulted in a Memorandum of Understanding signed on May 7 to guide the process. This agreement ensures fairness, transparency, and absorption of most affected workers by new investors,” Mutua explained.
A total of 1,743 employees in Kisumu County were affected by the restructuring of Chemelil, Muhoroni, and Miwani sugar companies, with the government beginning the process of clearing salary arrears.
Partial payments totaling Ksh1.8 billion for the period between May and August 2025 have been made, while the remaining Ksh3.8 billion in arrears and Ksh15 billion in terminal dues are expected to be settled by June 2026.
A transition committee, including officials from the Ministries of Agriculture and Treasury, county governments, and union representatives, is overseeing the implementation of these reforms.
Mutua assured the Senate that the government remains committed to settling all dues for both existing and retained employees and upholding labor practices in accordance with Article 41 of the Constitution.