MPs raise concerns over unpaid salary arrears at Nzoia Sugar Company

Members of parliament, (MPs) have raised concerns about unpaid salary arrears at Nzoia Sugar Company.

The legislatures said that employees have been passing through hardships due to arrears owed by the company even though government had assured the workers that it will cover their salaries and pensions for the first year as they face transition following the official leasing of the mills.

This was raised during an engagement of the Public Investment Committee on Social Services, Administration and Agriculture Food security, whereby the MPs reviewed the Auditor-General’s report for the Authority for the financial years 2022/2023 to 2023/2024.

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Human resource governance challenges were also discussed. The company had worked with the State Corporations Advisory Committee (SCAC) to develop HR instruments, but these were later challenged in court and declared unconstitutional.

Following the ruling, the authority has forwarded updated HR instruments to the Public Service Commission for review and approval.

In the session chaired by the Vice-chairperson Caleb Amisi, the committee examined a variance between revenue from exchange transactions and figures shown on the e-Citizen platform.

Nzoia Sugar Management stated that they had written to the Principal Secretary at the National Treasury, requesting the release of funds to address this difference and align the records.

By Obegi Malack

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