Govt to settle Ksh1.9 Billion in salary arrears for sugar workers

The government has committed to clearing Ksh 1.9 billion in salary arrears owed to workers of four former state-owned sugar mills, following their privatization and leasing to private investors.

Agriculture Principal Secretary Kiprono Ronoh confirmed that the arrears have been fully audited and allocated for in the national budget, ensuring that payments to the affected employees can proceed.

Ronoh emphasized that the government had pledged to absorb part of the liabilities, including employee salary arrears, during the handover of the mills. He stated,

“The audited amount stands at Ksh 1.9 billion, and the funds have now been set aside to ensure all verified arrears are paid,” he stated.

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Speaking at Chemelil Sugar Company in Kisumu, Ronoh added that the government had already settled other legacy liabilities related to the mills’ transition and that audits for statutory deductions owed to workers were also in progress.

The PS also noted that more than 80% of the former workforce had been absorbed by the new mill operators, with job numbers expected to rise significantly as production scales up.

“The four mills previously employed about 3,500 workers. Based on the plans presented by the new investors, we anticipate employment to grow to about 10,000,” Ronoh explained, encouraging investors to prioritize the hiring of youth to help revitalize the sector.

By Obegi Malack

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