The nationwide strike by sugar factory workers has been suspended following high-level crisis talks between the Government and the Kenya Union of Sugar Plantation and Allied Workers (KUSPAW), bringing temporary relief to the troubled sugar sector.
The industrial action, which began on January 29, 2026, affected operations at Muhoroni, Nzoia, Sony and Chemelil sugar factories.
Workers had downed their tools over unpaid salary arrears and terminal benefits amounting to Sh10.8 billion, owed to both serving and former employees.
In a statement issued on Monday, the Ministry of Agriculture and Livestock Development said the strike was called off after a meeting held at Kilimo House, chaired by Agriculture Cabinet Secretary, Mutahi Kagwe.
The talks brought together senior government officials, including Agriculture Principal Secretary Dr Kipronoh Ronoh, Kenya Sugar Board (KSB) Chief Executive Officer Jude Chesire, Chair of the Sugar Transition Committee Harun Khator, and KUSPAW officials led by General Secretary Francis Wangara.
Under the agreement, workers will resume duty immediately as payment processes are finalised.
The Government committed to release Sh1 billion within the next two weeks to ease the workers’ immediate financial hardship, with the balance of the arrears to be settled through the Supplementary Budget and subsequent budgetary allocations, subject to parliamentary approval.
Addressing the meeting, Kagwe acknowledged the difficulties faced by workers and apologised for delays in honouring earlier commitments, citing fiscal constraints.
“As Government, we accept responsibility for these debts. The arrears are owed by the Government, not private millers,” Kagwe said.
“We will push Parliament hard to resolve this matter conclusively through the Supplementary Budget so that the sugar sector is stabilised once and for all.”
The meeting reaffirmed that the outstanding arrears are legacy obligations arising from the sector’s transition process and are not liabilities of private millers currently leasing and operating the factories.
The Cabinet Secretary cautioned against industrial action targeting private investors, saying it only worsens worker hardship and undermines sector recovery.
KUSPAW General Secretary Francis Wangara said the union had agreed to suspend the strike in good faith, noting that many former workers 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,” Wangara said.
“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 employment terms in some factories, non-compliance with transition agreements and alleged intimidation of union officials, issues that were flagged for urgent follow-up.
KSB CEO Jude Chesire urged all parties to maintain stability to allow factories to operate and generate revenue needed to sustain the sector, as government agencies and the union continue to monitor implementation of the agreement.
