Government to release Ksh1bn to settle part of sugar workers’ dues

By Sandra Neddy

Sugarcane farmers in Kenya can now breathe a sigh of relief after the government pledged to release KSh1 billion within the next two weeks to settle part of the salary arrears and terminal benefits owed to sugar factory workers.

This announcement follows the suspension of the nationwide strike by factory workers, which had halted operations at Muhoroni, Nzoia, Sony, and Chemelil factories. The strike, which began on 29 January 2026, was triggered by unpaid salaries and terminal benefits amounting to KSh10.8 billion.

Factory closures during the industrial action left harvested cane unprocessed, creating fears of crop losses and income delays for farmers who rely heavily on timely payments to sustain their farms and households.

Speaking during high-level talks between the Government and the Kenya Union of Sugar Plantation and Allied Workers (KUSPAW), emphasized that workers would resume duty immediately while payment processes are finalized.

“We are committed to ensuring that the outstanding payments are made in phases, and workers can return to work knowing their dues will be honored,” said CS Kagwe.

He also urged all parties to avoid industrial actions that target third parties, cautioning that such strikes disrupt operations and delay sector recovery.

Security agencies have been directed to restore normalcy while the State Department for Agriculture, the Treasury, the Sugar Board and KUSPAW will monitor disbursements and resolve outstanding labour issues.

KUSPAW General Secretary Francis Wangara welcomed the government’s renewed commitment, noting that many workers especially those who had exited service were facing severe hardship and that this move is expected to bring them some relief.

“The union has suspended the strike in good faith and will continue monitoring the release of funds and implementation of agreed milestones, while also addressing concerns over delayed union deductions,” he said.

For sugarcane farmers, the resumption of factory operations is a major boost. Milling of harvested cane can now continue without interruption, reducing the risk of crop spoilage and enabling farmers to receive timely payments.

This stability allows them to plan for future harvests, reinvest in farm inputs and maintain household incomes.

With workers back in factories and the government committed to clearing arrears, sugarcane farmers can finally look forward to a stable season, uninterrupted milling and payments that safeguard their livelihoods and strengthen Kenya’s sugar sector.