State releases Sh230m payout to former Pan Paper workers

National Assembly Speaker Moses Wetang’ula addressing a campaign rally at Shamberere Primary School grounds in Malava on Saturday /IMAGE /HILTON OTENYO

The government has released Sh230 million to former employees of Pan Paper Mills in Webuye, Bungoma county.

The payout marks a major step in settling long-standing arrears owed to hundreds of workers affected by the collapse of the factory.

National Assembly Speaker Moses Wetang’ula and Bungoma Governor Ken Lusaka presided over the issuance of the payments.

Trade and Industry Principal Secretary Juma Mukhwana said revival of Pan Paper remains one of the most closely watched industrial rehabilitation efforts.

“For Webuye residents and the families of former employees, the Sh230 million payout represents long-awaited justice and rekindles hope that the town’s industrial heartbeat is finally returning,” he said.

Wetang’ula termed the payout a fresh chapter in the revival of the region’s industrial economy.

He said the payment is a relief for families whose livelihoods were disrupted following the collapse of the giant paper mill in East and Central Africa after decades of financial turbulence.

“Since its inception in 1973, Pan Paper transformed the lives of many people across the country and spurred the growth of Webuye town,” Wetang’ula said.

He urged former workers to use the money responsibly by prioritising development of their households.

The speaker praised investor Narendra Raval, popularly known as Rai, for stepping in to revive the struggling plant and injecting new energy into Bungoma’s industrial prospects.

“I thank Rai for reviving this company because he is the number one investor in Bungoma County. He has invested heavily, and now the government has entrusted him with Nzoia Sugar Company,” Wetang’ula said.

Wetang’ula said the lifting of a longstanding ban on logging was expected to accelerate the factory’s return to full operations.

“Soon, you will see Rai Paper back on its feet,” he assured workers.

Lusaka said the payment is a moment of pride for a county that has long waited for accountability and closure.

“I am proud to witness our workers finally being paid. Let’s not misuse the money. We thank President William Ruto for enabling this and alleviating the suffering of former Pan Paper workers,” he said.

Rai welcomed the payouts, saying the company would continue integrating former employees into its revived operations.

“I am happy that the old workers have finally received their rightful dues, although it has taken long,” he said.

“Each of the ex-employees will have one of their households given an opportunity for employment.”

Rai said payment to farmers at Nzoia Sugar Company, now under his management, will be made promptly every week.

He said he is committed to restoring stability across Kenya's agro-industrial value chains.