The Kenya Sugar Board has disbursed over Sh600 million to
sugarcane factory workers, marking a significant step toward fulfilling its
commitment to settle outstanding debts owed to employees and farmers.
This follows the
government's initiative to lease four state-owned sugar factories as part of
the sector's revitalisation efforts.
The latest payment reduces the total outstanding debt from
Sh5.6 billion to Sh5 billion, subject to final audit.
According to Kenya Sugar Board CEO Jude Chesire, the
total amount paid out to workers since last year has now surpassed Sh1.2
billion.
Chesire assured stakeholders that the leasing arrangement would not compromise the proper management of the factories.
"The regulations, which have undergone national
validation and are set to be gazetted, provide clear safeguards," he said.
"The 30-year lease period is non-renewable, with a
review of terms every five years and an exit clause included to ensure
accountability."
Addressing public concerns over the length of the lease, Chesire
emphasised that the period offers investors ample time to make meaningful,
long-term investments that will benefit all stakeholders—workers, farmers, and
the broader community.
The Board reaffirmed its commitment to transparency and
responsible oversight throughout the leasing process as it continues working
towards a sustainable future for Kenya’s sugar industry.
