By Lisa Murimi
Kenya Sugarcane Board CEO Jude Chesire has announced that sugarcane farmers supplying the four recently leased sugar factories will now receive weekly payments.
Speaking at a press briefing on Tuesday, May 13, Chesire emphasized that timely payment is a non-negotiable condition of the lease agreements signed with investors.
“If the investors fail to pay farmers on time, their leases will be revoked,” he warned.
The factories—Nzoia, Chemelil, Muhoroni, and Sony—have been leased to private investors for 30 years as part of the government’s strategy to revive the struggling sugar sector.
Under the new arrangement, farmers will also receive annual bonuses based on the volume of cane they supply.
Chesire further outlined that investors are required to modernize the factories and upgrade infrastructure within six months. Failure to do so will lead to lease termination.
“These are some of the many conditions we have set to ensure that these investors perform their duties diligently, as some farmers are concerned that the leases will simply be used as a weighbridge, but that is not true,” he said.
“When these companies were announced, one of the conditions that we set was that new laws had to be introduced to protect farmers, and that is why the Sugar Act, which has already been passed, was formed by the farmers and other stakeholders.”
Investors now in charge include West Kenya Sugar Company (Nzoia), Kibos Sugar & Allied Industries (Chemelil), Busia Sugar Industry Ltd (Sony), and West Valley Sugar Company (Muhoroni).
Agriculture Cabinet Secretary Mutahi Kagwe added that the government will cover factory workers’ salaries for the first year, with Ksh1 billion allocated in May and another Ksh1.5 billion set for July.
“Ksh1 billion will be paid to workers upon takeover (Ksh 600 million to pay part of the staff arrears and the remaining Ksh 400 million to pay salaries starting from May 2025),” he stated.
“Ksh1.5 billion will be released in July 2025 for the payment of staff salaries and arrears,” he added.
The ministry also pledged to clear all salary arrears and pension contributions.
