Over 5,000 sugar workers face uncertainty as state firms begin layoffs under private leases

More than 5,000 workers in Kenya’s sugar sector are starring at job losses as state-owned sugar companies begin issuing redundancy notices following their recent leasing to private investors.

The affected firms, which include; Chemelil, Muhoroni, Sony, and Nzoia Sugar Companies, have been authorised by the government to terminate existing employment contracts as they hand over operations to new management

Agriculture Principal Secretary Kipronoh Ronoh has directed the managing directors of the four firms to formally notify all employees of the contract terminations but those interested in continuing under the new ownership shall be required to reapply for their positions

“All notices must be in writing, clearly stating the reason for termination and outlining the employees’ entitlements,” Ronoh said, adding that copies should be sent to county labour offices. He assured the employees that all due benefits would be paid in accordance with the law and existing Collective Bargaining Agreements (CBAs).

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However, uncertainty looms over the fate of salary and allowance arrears amounting to Ksh5.23 billion, which were previously promised to be cleared within six months of the lease agreements.

It remains unclear whether these outstanding payments will be factored into the redundancy packages.

Sony Sugar has already begun implementing the directive. Through a memo dated earlier this month, Managing Director Martine Dima informed staff that their services would be terminated due to redundancy on October 31, 2025. The Migori-based miller has since been leased to Busia Sugar Industries and rebranded as New Sony 2025, with a 30-year operational lease.

Meanwhile, Chemelil, Muhoroni, and Nzoia have been leased to Kibos Sugar and Allied Industries, West Valley Sugar, and West Kenya Sugar, respectively.

For some employees nearing retirement, the transition may offer terminal benefits and service gratuities, but for many others, the future remains uncertain.

By Masaki Enock

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