Kenyan Govt Directs State-Owned Sugar Mills to Retrench 5,000 Workers: "Dues to Be Paid"
- Agriculture Principal Secretary (PS) Kipronoh Ronoh instructed four state-owned sugar mills that were leased to private investors to retrench workers
- This came even as unpaid salaries owed to employees by the public factories soared to billions of shillings
- Sony Sugar Company in Migori county issued termination notices to staff, indicating their last day of employment
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The Kenyan government has allowed state-owned sugar mills, which were leased to private investors, to lay off all their workers.
Source: Getty Images
Agriculture Principal Secretary (PS) Kipronoh Ronoh instructed Chemelil, Muhoroni, Sony, and Nzoia companies to issue redundancy notices to staff.
How many workers will be affected?
The move is expected to affect approximately 5,000 workers, resulting in significant job losses amid challenging economic conditions.
Reapplications will be required for those who want to remain under the new investors.
Ronoh said that the notices must be in writing, with an explanation of the reasons for termination and the employees' rights, and a copy must be sent to the county labour officer.
"Employees should also be informed that all their dues and lawful entitlements will be fully paid in accordance with the provisions of the law and the collective bargaining agreements," he stated, as reported by the Daily Nation.
Unpaid salaries for workers in sugar mills have accumulated to KSh 5.23 billion.
The impending mass layoffs pose an uncertain future for thousands of workers throughout the sugar belt.
In areas where poverty rates are already high and there are few other options for a living, families who have relied on the work for decades now stare at unemployment.
What was Sony Sugar's notice?
All employees of the Migori-based mill have already received notifications of termination of employment from their managing director, Martine Dima.
"The management would like to inform all staff members that, as a result of redundancy, their employment with the company will end on October 31, 2025," Dima's notice reads.
Source: Getty Images
Since Busia Sugar Industries leased Sony, which was founded in 1976, the state-owned factory has changed its name to New Sony 2025. The new investor will manage the company for 30 years.
West Kenya Sugar leased Nzoia Sugar, Kibos Sugar & Allied Industries leased Chemelil, and West Valley Sugar leased Muhoroni.
Why did the govt lease out sugar millers?
President William Ruto stated that the lease was intended to increase the productivity and profitability of the local sugar industry while speaking during the 62nd Madaraka Day celebrations in Homa Bay county on Sunday, June 1.
Ruto asserted that efficient mills provide farmers with better yields and are more profitable.
He maintained that growers were being shortchanged and cheated out of their sweat by outdated mills that only produced one tonne of sugar from almost 20 tonnes of cane, some of which are powered by plants that are more than 50 years old.
According to him, leasing the four mills is an additional calculated move to protect farmers' livelihoods.
Proofreading by Jackson Otukho, copy editor at TUKO.co.ke.
Source: TUKO.co.ke
