Sugar Sector Workers Threaten Nationwide Strike Over KSh 1.9 Billion Arrears

By Kepher Otieno - Reporter

Kenya, 19 December 2025 - Kenya’s sugar sector is on the brink of disruption as the Kenya Union of Sugarcane Plantation and Allied Workers (KUSPAW) announced a nationwide strike over KSh 1.9 billion in unpaid salary and terminal benefits.

The planned industrial action, set to begin Monday, targets workers at four state-owned sugar mills—Muhoroni, Chemelil, Nzoia, and SoNy—currently under private management through government leasing agreements.

Union General Secretary Francis Wangara told the media that the strike will proceed unless the government either settles the arrears or provides a firm, time-bound commitment before the Christmas break.

“We agreed with the Ministry of Agriculture and the National Treasury that workers’ dues would be paid by November and before Christmas. To date, there has been no communication or commitment from government,” Wangara said.

The unpaid dues affect two categories of workers: those declared redundant following the transition to private management, and employees absorbed by new operators but still owed part of their benefits.

According to KUSPAW, the workforce reductions implemented by private millers left several employees without jobs and unpaid entitlements.

On 15 December 2025, the union formally demanded settlement by 19 December, warning that failure to comply would trigger industrial action.

“We have not received any response. From Monday, workers should not report to work until their payments are made,” Wangara said, urging investors to allow staff to exercise their constitutional right to strike.

While placing primary responsibility on the government, Wangara noted that private millers could pay the dues and later seek reimbursement from the State.

“Whichever company is ready to pay can do so and ask the government to refund,” he said. He further criticized authorities for a lack of commitment, warning that continued silence would exacerbate workers’ hardships.

The union has, for now, opted to pursue engagement with the Ministry of Labour and the transition structures overseeing the handover rather than legal action.

More from Kenya

Calls to Review Kenya-British Army Relations as Laikipia Communities Speak Out on Abuses

Kenya Targets Five Million Tourists by 2027 with Tech Boost

Wangara emphasised that a resolution had been discussed in a transition committee meeting on 6 December, which resolved that payments be made before Christmas—a resolution yet to be implemented.

The strike threat emerges against the backdrop of ongoing sugar sector reforms, under which the government leased state-owned mills to private investors to improve efficiency, revive production, and reduce operational losses.

Under the leasing arrangements, Muhoroni, Chemelil, Nzoia, and SoNy sugar companies were taken over earlier this year, with the expectation that private operators would stabilise operations while the State settled legacy debts, including salary arrears.

However, months into the transition, KUSPAW claims that outstanding payments—including salaries and retirement benefits totaling more than KSh 10 billion—remain unsettled, highlighting significant gaps in the reform process.

The dispute underscores the challenges the government faces in balancing investor-led operational efficiency with worker welfare, a critical factor for ensuring sector stability.

Analysts say the unrest could affect sugar output and supply, with potential knock-on effects on related industries such as ethanol production and downstream food processing. The looming strike also raises questions about the effectiveness of the government’s reform timetable and its capacity to resolve inherited liabilities while attracting private investment.

The standoff between workers and the government is a litmus test for Kenya’s broader industrial strategy in critical state-run sectors. How quickly authorities respond to the wage arrears could determine both the success of the privatization initiative and the short-term stability of sugar production, a key component of the country’s agro-industrial economy.

If unresolved, the strike threatens to disrupt operations at the four mills, potentially affecting thousands of workers and stakeholders dependent on the sector. With the holiday season approaching, the timing of the strike could further intensify pressure on the government to deliver concrete commitments and payments.

As the sector watches closely, the government’s next steps will be pivotal in maintaining investor confidence while preventing a labor crisis that could derail the ongoing reform agenda.