Sugar workers issue strike notice over Sh10.8 billion unpaid dues

Business · Tania Wanjiku · January 24, 2026
Sugar workers issue strike notice over Sh10.8 billion unpaid dues
Sugarcane tractors. PHOTO/Handout
In Summary

In 2025, the government leased the four state-owned mills to private investors as part of efforts to revive the sugar industry and attract fresh capital. The reform plan included a commitment to clear salary arrears and benefits for workers before and during the transition, but unions say these commitments have not been fully honoured.

Thousands of sugar industry workers are preparing to strike after the government failed to clear salary arrears and benefits totaling Sh10.8 billion, deepening tension in the troubled sector.

The workers, employed by four major sugar companies, say they have waited for months without pay despite repeated assurances from authorities.

Kenya Union of Sugar Plantation and Allied Workers (KUSPAW) General Secretary Francis Wangara said the government is still responsible for paying the arrears, even after the mills were leased to private investors under the reform programme.

“The government made a commitment to release a partial payment of Sh4 billion before December, including Sh1.9 billion in salary arrears due by the end of November… but nothing has been paid,” Wangara said during a briefing in Kisumu.

He accused the Ministry of Agriculture and senior officials of giving repeated promises that have not been fulfilled. According to the union, workers at Nzoia, Chemelil, Sony and Muhoroni sugar companies will stop working from next Thursday until the outstanding money is paid and reflected in their accounts.

The strike notice comes after prolonged frustration among employees who say they have gone for long periods without wages as the sector undergoes restructuring. While some partial payments have been made in the past, large amounts remain unpaid, and scheduled instalments have been delayed.

In 2025, the government leased the four state-owned mills to private investors as part of efforts to revive the sugar industry and attract fresh capital. The reform plan included a commitment to clear salary arrears and benefits for workers before and during the transition, but unions say these commitments have not been fully honoured.

The sugar industry has faced long-standing problems, including outdated equipment, weak planning, and financial difficulties. Temporary shutdowns of mills in 2025 to implement reforms and the introduction of the Sugar Development Levy highlighted deeper challenges affecting the sector.

Union leaders and local leaders have criticised the slow pace of arrears payments and how layoffs and redundancies have been handled, saying government promises have not matched action. In 2025, the Central Organisation of Trade Unions (COTU) clashed with labour officials over job losses linked to mill restructuring, accusing authorities of neglecting employment concerns.

Previous strikes have also exposed ongoing wage disputes in the sector. For instance, Sony Sugar workers previously staged protests over KSh350 million in unpaid wages, showing that salary delays have been a persistent problem.

The planned strike could affect thousands of families in sugar-growing regions in Western and Nyanza, where many households depend on mill salaries to pay for food, school fees, and healthcare. Any disruption could worsen economic pressure in areas with limited job options.

Trade unions warn that continued delays in clearing arrears could weaken confidence in the reform programme and trigger unrest in the sector. The Ministry of Agriculture has not issued a public response to the latest strike notice, although earlier statements acknowledged the arrears and outlined phased payment plans.

As the strike deadline nears, pressure is building on the government and private mill operators to act and prevent a shutdown that could further destabilise the sugar industry.

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