National Assembly Speaker Moses Wetang’ula has lauded the government’s release of KSh230 million to former Pan Paper Mills employees, marking a major step in clearing long-pending arrears owed since the collapse of the Webuye-based factory.
The funds were disbursed this week in Bungoma County, bringing long-awaited relief to hundreds of affected families.
Speaking during the event, Wetang’ula said the settlement represented a “fresh chapter” for the region, noting that Pan Paper had played a foundational role in Webuye’s growth for decades.
The factory, established in 1973, was once one of Kenya’s leading industrial employers before financial difficulties forced its shutdown, leaving workers in prolonged uncertainty.
He urged beneficiaries to prioritise school fees, family needs, and long-term development when utilising the funds. According to the Speaker, the payout should help restore stability in households that had endured years of financial strain after the factory’s closure.
Wetang’ula also expressed regret over the economic downturn that led to Pan Paper’s collapse, describing it as a significant setback for Bungoma’s industrial economy.
He commended businessman Narendra Raval, also known as Raval Rai, for investing in the mill’s revival and contributing to renewed activity in the region’s manufacturing sector.
Raval’s engagement with the plant, along with the government’s decision to entrust him with Nzoia Sugar Company, was cited as evidence of sustained investor confidence in Western Kenya.
He further noted that the government’s move to lift the logging ban is expected to support full recovery of the mill, which relies heavily on timber supply.
The lifting of the restriction is seen as a necessary intervention to help stabilise raw material flow for paper production.