Agriculture CS Mutahi Kagwe. Photo/Courtesy
By Daisy Okiring
NAIROBI, Kenya: Agriculture Cabinet Secretary Mutahi Kagwe has reaffirmed the government’s commitment to settling all pending payments owed to workers in public sugar factories, signaling a renewed push to stabilize the struggling sugar industry.
Speaking during a high-level meeting with representatives from the Kenya Union of Sugar Plantation and Allied Workers, the Kenya Sugar Board, and the management of the four recently leased sugar factories, Kagwe assured that the government will clear all salary arrears owed to factory workers and farmers.
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“We are not refusing to pay, but we must operate within fiscal realities. Every shilling due will be honored. This office remains open and fully committed to ensuring that workers and farmers receive what they are owed,” said Kagwe.
The CS acknowledged that the government was facing tight financial constraints but emphasized that workers’ welfare remains a top priority. He revealed that the payment program is already underway, with the Treasury releasing funds to clear overdue wages and outstanding payments to sugarcane farmers.
Kagwe also outlined the government’s strategy to ensure a sustainable future for the sugar sector. He stated that most of the workers from public factories will be absorbed by private operators who recently took over management of the mills, while others will retire under government compensation schemes.
“The leasing of state-owned factories is not a privatization scheme—it is a revival strategy aimed at improving efficiency, reducing losses, and protecting jobs,” he added.
In May 2025, the government officially leased Nzoia, Chemelil, Sony, and Muhoroni sugar factories to private investors under 30-year contracts. The move, Kagwe explained, was part of a broader plan to attract private capital, boost production, and make Kenya’s sugar industry competitive again.
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Under the new arrangement, West Kenya Sugar Company, Kibos Sugar & Allied Industries, Busia Sugar Industry, and West Valley Sugar Company took over the operations of the four mills. The government expects the private operators to modernize infrastructure, enhance efficiency, and expand market access for Kenyan sugar both locally and regionally.
To ensure accountability, Kagwe issued several directives to all operators in the sector. These included the immediate resumption of operations in all leased factories, urgent repair and modernization of milling equipment, and strict adherence to investment commitments outlined in the lease agreements.
He also directed that only the CEO of the Kenya Sugar Board would have the authority to approve weighbridge operations. The directive aims to curb unauthorized weighbridge use, which has long been linked to sugar smuggling, under-declaration of cane weight, and unfair practices against farmers.
“Unauthorized weighbridges will not be tolerated. Any miller operating outside their catchment area without proper authorization will face closure,” Kagwe warned.
The CS assured farmers that the government is working closely with private investors to ensure timely cane harvesting and fair payment practices. He stressed that the administration’s priority is to rebuild confidence among stakeholders who have long suffered from delayed payments and poor management.
“The sugar industry employs thousands of Kenyans directly and indirectly. Reviving it is not just an economic issue—it’s a matter of dignity for our farmers and workers,” said Kagwe.
Economists have lauded the move as a crucial step toward restoring Kenya’s self-sufficiency in sugar production and reducing the country’s dependence on imports. However, industry stakeholders have urged the government to maintain strict oversight over the private millers to prevent exploitation of workers and farmers.
As Kenya navigates its fiscal challenges, Kagwe’s assurance comes as a relief to thousands of sugar sector employees who have gone months without pay. The government’s payment plan, coupled with private sector involvement, could signal the beginning of a long-awaited turnaround for the once-thriving sugar industry.
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