GOVERNMENT, UNIONS REACH AGREEMENT AS SUGAR WORKERS SUSPEND INDUSTRIAL ACTION
The nationwide strike by sugar factory workers has been called off following high-level crisis talks held today at Kilimo House between the Government and the Kenya Union of Sugar Plantation and Allied Workers (KUSPAW).
The meeting was chaired by the Cabinet Secretary for Agriculture and Livestock Development, Sen. Mutahi Kagwe, and brought together the Principal Secretary for Agriculture, Dr. Kipronoh Ronoh, Kenya Sugar Board (KSB) CEO Mr. Jude Chesire, Chair of the Sugar Transition Committee Harun Khator, and KUSPAW officials led by General Secretary Mr. Francis Wangara.
The industrial action, which began on 29th January 2026, affected workers at Muhoroni, Nzoia, Sony and Chemelil Sugar Factories, over unpaid salary arrears and terminal benefits amounting to KSh10.8 billion, owed to both serving and exited employees.
Following extensive deliberations, the parties agreed as follows:
- The strike has been suspended with immediate effect, and workers will return to duty as payment processes are finalised.
- KSh1 billion will be released within the next two weeks to ease immediate hardship faced by workers.
- The balance of arrears will be settled through the Supplementary Budget and subsequent budgets, with Parliament being formally engaged to approve them.
- Payments will continue to be made in phases, covering salary arrears, redundancy dues, pensions and other terminal benefits.
Addressing the meeting, CS Sen. Mutahi Kagwe acknowledged the hardship faced by workers and apologized for delays in honouring previous commitments, citing fiscal constraints.
The meeting clearly reaffirmed that the outstanding arrears are obligations of the Government of Kenya arising from the transition process, not liabilities of the private millers currently leasing and operating the factories.
Accordingly, it was emphasized that:
- Private millers are not party to the arrears dispute,
- They have no direct dispute with unions regarding these legacy obligations, and
- Industrial action directed at private millers or factory operations does not address the root cause of the dispute.
The Cabinet Secretary underscored that there is no justification for striking against third parties who were not privy to the agreements that created the arrears, and cautioned that roping in private investors only prolongs worker hardship, disrupts operations, and undermines sector recovery.
“As Government, we accept responsibility for these debts. The arrears are owed by the Government, not private millers. We will push Parliament hard to resolve this matter conclusively through the Supplementary Budget so that the sugar sector is stabilized once and for all.”
The CS further appealed to Parliament — particularly MPs from sugar-growing regions — to support the allocation and fast-tracking of funds, while cautioning that industrial action targeting private lessees does not resolve Government-owed obligations.
KUSPAW General Secretary Francis Wangara welcomed the renewed Government commitment, noting that workers who exited service are facing severe hardship, including lack of housing, medical cover and basic livelihoods.
“We have agreed to suspend the strike in good faith as we monitor the release of funds and implementation of agreed milestones. Workers have suffered long enough, and this matter must now be resolved conclusively.”
The union also raised concerns over:
- Delayed remittance of union deductions,
- Poor and exploitative employment terms in some factories,
- Non-compliance with agreed transition arrangements, including worker retention levels,
- Alleged intimidation of union officials and interference with union activities.
These issues were noted for urgent follow-up and engagement with millers and investors.
KSB CEO Mr. Jude Chesire affirmed continued engagement with millers and unions, urging all parties to maintain stability to allow factories to operate and generate revenues needed to sustain the sector.
The Cabinet Secretary condemned destruction of property, intimidation and unlawful acts, while reaffirming that peaceful demonstrations are protected by law. Security agencies have been directed to ensure normalcy returns to all affected areas.
The Ministry, Kenya Sugar Board, Treasury and KUSPAW will maintain close coordination to track disbursements, compliance by millers, and resolution of outstanding labour issues, including reinstatement of suspended employees where applicable.
ENDS
Sen. Mutahi Kagwe, E.G.H
Cabinet Secretary
Ministry of Agriculture & Livestock Development
