The fate of workers at Chemelil Sugar Company and Muhoroni Sugar Factory has been revealed following the leasing of the two state-owned mills to private firms.
Agriculture PS Dr Kipronoh Ronoh provided a detailed report on the future of workers at the two millers in response to the statement in Parliament regarding the position of the leasing programme of state-owned sugar firms.
Kibos Sugar and Allied Industries Limited has officially assumed operations at Chemelil Sugar Company.
On the other hand, Muhoroni Sugar Factory is now operated by West Valley Sugar Company Ltd.
In his response, Ronoh noted that workers shall be actively engaged in the operations and maintenance of the company during the transition period to ensure continuity and stability.
He added that the investors shall retain the current workers for a maximum period of 12 months from the date of handover.
During these 12 months, Ronoh noted that workers shall remain under the existing terms and conditions of service.
He nonetheless pointed out that during the first six months, the investors shall identify and retain the employees they need.
“The government will pay all arrears of salaries, benefits and any kind of emoluments owed to the employees, which accrued at any time before the handover date,” the PS stated.
The advertisement of the International Tender for the
Leasing of the state-owned sugar companies was done on February 28, 2025 and
March 4, 2025, with a closing date of March 25, 2025.
The bids received were evaluated, and tenders were awarded.
The handing over was done on May 10, 2025.
“Therefore, the current status is that the two companies have been leased for 30 years as approved by the National Assembly,” Ronoh added.
The prospective bidders were requested to provide detailed eligibility requirements for their companies, including provision of a bid security of Sh200 million, the registration certificate, tax registration and compliance certificate.
“The bidders who were technically responsive by scoring 80 per cent and above were subjected to the next stage of financial evaluation criteria,” the PS noted.
