Speaking during a meeting with the Kenya Union of Sugar Plantation and Allied Workers, the Kenya Sugar Board, and representatives of the four leased sugar factories, the CS underscored that settling workers’ arrears remains a priority for the administration.
He also stated that there are current financial constraints and that the government is “working within fiscal realities”.
“We are not refusing to pay…but every shilling due will be honoured. This office remains open and fully committed to ensuring workers and farmers receive what they are owed,” he said.
CS Kagwe further noted that the payment programme is already underway, adding that the government has also begun clearing longstanding dues owed to sugarcane farmers.
He intimated that the majority of workers from the factories will be re-absorbed by private operators who have taken over the mills, with others exiting through retirement.
He maintained that the administration is committed to reviving the sugar industry, stating that the leasing of key state-owned factories marks a strategic shift toward sustainability, efficiency, and job creation.
While highlighting the importance of private sector’s participation in reviving the sugar industry, the CS issued a set of directives to ensure accountability and smooth operations across the sector.
These include immediate commencement of full operations in all leased factories, urgent repairs at the facilities, and strict adherence to investment commitments by the lessees.
To safeguard farmers and maintain order in the sector, the CS further directed that only the CEO of the Kenya Sugar Board may authorize weighbridge operations.
He further warned that unauthorized weighbridges will not be tolerated, and disruptions to cane zoning and harvesting areas will be firmly addressed.
Weighbridges for millers operating outside their catchment areas shall also be closed with immediate effect.
This comes after the government leased four state-owned sugar factories to private millers in May 2025, in a bid to revive the ailing sugar industry.
The four mills, Nzoia, Chemelil, Sony, and Muhoroni, will be leased for 30 years to West Kenya Sugar Company, Kibos Sugar & Allied Industries, Busia Sugar Industry, and West Valley Sugar Company, respectively.
