Trans Nzoia Governor opposes Nzoia Sugar company redundancy plan

Trans Nzoia Governor George Natembeya has opposed a redundancy plan by Nzoia Sugar Company that could leave thousands of workers jobless.

In a statement issued on August 21, 2025, Natembeya raised alarm over an internal memo dated August 18, 2025, in which the management of Nzoia Sugar notified its staff of an intended redundancy effective November 1, 2025. The notice followed a government directive to lease state-owned sugar factories to private investors.

The Governor warned that the move will destabilize livelihoods and cripple the Western Kenya economy. “As the Governor of Trans Nzoia County and a firm defender of the livelihoods of our people, I strongly oppose this reckless move that threatens the jobs of thousands of workers, their families and the broader economy of our region,” he said.

Natembeya stressed that Nzoia Sugar is central to the survival of farmers, traders, contractors, transporters and small businesses across the sugar belt.

“Nzoia Sugar Company is not just a factory; it is the heartbeat of our farmers, traders, contractors, transporters and countless small businesses whose survival depends directly and indirectly on its operations,” he noted.

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He also condemned the decision as unilateral and poorly handled. “The unilateral decision to lease the Company without adequate consultation with stakeholders is unacceptable. It is a betrayal of the hardworking men and women who have dedicated their lives to the sugar industry in Kenya,” he said.

The Governor insisted that reforms in the sugar sector should safeguard the interests of farmers and workers. “My administration has consistently insisted that any reforms in the sugar sector must prioritize farmers and workers, not private profiteers,” he declared.

Natembeya said he has already engaged the Ministry of Agriculture and the management of Nzoia Sugar Company to halt the redundancy process. He vowed not to allow the factory to push families into poverty. “I will not stand by as thousands of families are pushed into poverty under the guise of restructuring. The future of our people cannot and will not be mortgaged for short-term gains,” he added.

The Governor further urged leaders from across Western Kenya, including governors, senators, Members of Parliament, and Members of County Assemblies, to unite against what he called an “ill-advised leasing scheme.” He demanded a transparent and inclusive approach that secures jobs and guarantees fair returns for farmers. “Our people deserve better. We demand a transparent, inclusive process that emphasizes modernization of the sugar sector, protection of jobs and fair returns for our farmers,” Natembeya said.

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The redundancy notices were issued after Agriculture Principal Secretary Kipronoh Rono, through a memo dated August 12, 2025, directed the managing directors of Nzoia, Chemelil, Sony and Muhoroni sugar companies to formally declare redundancies. The PS instructed the firms to comply with Section 40 of the Employment Act, 2007 and relevant collective bargaining agreements, while ensuring copies of the notices were shared with county labour offices.

The Ministry assured workers that they would receive their legal dues. However, the notices signal that over 5,000 employees across the four factories could be affected. Reports indicate that those who wish to continue working under the new private investors may have to reapply for their positions.

Union officials have attempted to calm fears, saying engagements with investors are ongoing, but uncertainty remains high. While some new mill operators have expressed willingness to retain workers, the transition has sparked tension between the government, investors and county leaders.

By Benedict Aoya

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