Privatisation: Government declares redundant thousands of workers in state-owned sugar factories in western Kenya

Privatisation: Government declares redundant thousands of workers in state-owned sugar factories in western Kenya

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Kenya government’s decision to declare redundant workers in four state-owned sugar companies has sparked an uproar among farmers and employees, with threats of strikes and possible legal action looming.

Kenya Association of Sugar Cane and Allied Products (KASAP) chairman Charles Atyang’ accused the government of lack of transparency in the leasing process of Chemelil, Muhoroni, Nzoia and South Nyanza sugar companies.

Factory managers have already issued the redundancy notices, putting thousands of jobs on the line.

“To date, the stakeholders, especially the farmers who are supplying cane, the workers who are now being rendered redundant, were not adequately consulted on how they would be phased out once the new management takes over,” Atyang’ remarked.

In a communication to the managing directors of Chemelil, Muhoroni, Nzoia and South Nyanza Sugar companies, the Principal Secretary for Agriculture Paul Ronoh instructed the issuance of termination notices to employees under redundancy.

“In light of the ongoing restructuring of public sugar companies under the leasing framework, and in accordance with the provisions of Section 40 of the Employment Act, 2007 and the respective Collective Bargaining Agreements (CBAs), you are hereby directed to issue formal redundancy notices to all affected employees in your organisation,” read the circular in part.

Interviewed, Atyang’ noted that affected employees will officially cease to be workers at the leased factories on October 31, 2025.

“The process, as far as we are concerned, is fraudulent and as sugarcane farmers, we have consulted our lawyers and in a short while, we are likely to move to court to challenge the process,” Atyang’ stated.

The move, he said, has already triggered unrest at Chemelil Sugar Factory, where workers have downed their tools, demanding unpaid July salaries and clarity on their future under the leasing framework.

“They are urging the government to uphold transparency in the leasing process and clearly outline what will happen to current workers and retirees,” Atyang’ stated.

He added, “They have been evicted out of the company, yet some of them have served for over 30 years. Nobody is talking about their terminal benefits. These are human beings. They are our daughters, sons and fathers.”

At the same time, Atyang demanded the government make the lease agreements public and allow stakeholders to verify terms of engagement. He noted that the leased sugar companies host investments worth billions of shillings including cane estates, hospitals and schools that serve local communities.

“In these companies, there are public and private amenities like hospitals and schools that serve the community. To date, it has not been explained how these public amenities will be managed once private investors take over,” he concluded.

  • A Tell Media / KNA report / By Robert Ojwang’
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