Government Vows to Pay All Sugar Factory Workers Despite Budget Strain

Agriculture Cabinet Secretary Mutahi Kagwe has assured workers in state-owned sugar factories that the government will clear all outstanding dues owed to them, even as it grapples with tight fiscal constraints.

Kagwe said the Ruto administration remains committed to protecting the welfare of employees and farmers across the sugar belt, adding that payments to workers and cane growers have already begun.

“The government is not refusing to pay,” Kagwe said during a meeting with representatives from the Kenya Union of Sugar Plantation and Allied Workers, the Kenya Sugar Board, and officials from the four leased public sugar mills.

“We are simply working within the fiscal realities the country faces. However, every shilling owed to workers will be honoured.”

He was accompanied by Principal Secretary for Agriculture Paul Ronoh.

The CS said the revival of the sugar industry remains a top government priority, noting that the leasing of state-owned mills is part of a broader plan to restore efficiency, competitiveness, and sustainable jobs in the sector.

According to Kagwe, most workers in the affected factories will be reabsorbed by private investors now managing the mills, while others exiting the industry will receive retirement packages.

He directed the immediate resumption of full operations in all leased mills, urgent completion of machinery repairs, and strict adherence to the agreed investment schedules by the new operators.

Kagwe also issued a new directive to regulate sugarcane supply and curb farmer exploitation, stating that only the Kenya Sugar Board CEO will henceforth be authorised to approve weighbridge operations.

He warned that unauthorised weighbridges would face stern action, blaming rogue operations for market distortions, side-selling, and disputes over cane zones.

“We will not tolerate disruptions to cane zoning or interference with harvesting plans,” he cautioned. “The sector must operate fairly, transparently, and in a structured manner.”

Kagwe reaffirmed that the government’s focus is on restoring confidence in the sugar sector, safeguarding livelihoods in sugar-growing regions, and laying a firm foundation for long-term recovery.