Kagwe: State committed to clearing sugar workers’ arrears despite budget strain

Agriculture Cabinet Secretary Mutahi Kagwe (third left) with Principal Secretary Paul Ronoh and other officials during a meeting at his office on November 4, 2025/MOA

Agriculture Cabinet Secretary Mutahi Kagwe has assured workers in state-owned sugar factories that the government will settle all outstanding dues owed to them, even as the country faces tight fiscal conditions.

Kagwe, who met representatives from the Kenya Union of Sugar Plantation and Allied Workers, the Kenya Sugar Board, and officials from the four leased public sugar mills, said the administration remains committed to protecting the welfare of employees and farmers in the sugar belt.

“The government is not refusing to pay,” Kagwe said.

Also present during the meeting was Principal Secretary Paul Ronoh.

“We are simply working within the fiscal realities the country faces. However, every shilling owed to workers will be honoured. This office remains open, and we are fully committed to ensuring all workers and farmers receive what they are due," he added.

The CS revealed that payments have already begun, adding that the State has also started clearing long-pending arrears owed to sugarcane growers.

He emphasised that the revival of the sugar industry is a key focus area for the government, with the leasing of state-owned factories forming part of a broader plan to restore efficiency, competitiveness, and sustainable jobs in the sector.

Kagwe added that most workers from the affected factories will be reabsorbed by private operators now managing the mills, while others exiting the industry will do so through retirement packages.

He said the government expects the private investors to fully comply with their contractual obligations and announced a set of directives aimed at ensuring accountability and smooth transition in the factories.

Among the directives issued were the immediate resumption of full operations in all leased mills, urgent completion of machinery repairs, and strict adherence to the agreed investment schedules by the lessees.

In efforts to create order in sugarcane supply and protect farmers from exploitation, Kagwe further directed that only the Kenya Sugar Board CEO will be authorised to approve weighbridge operations.

He warned that any unauthorised weighbridges would face stern action, noting that rogue controls had previously led to market distortions, side-selling, and disputes over cane zones.

“We will not tolerate disruptions to cane zoning or interference with harvesting plans,” Kagwe cautioned.

“The sector must operate fairly, transparently, and in a structured manner.”

The CS noted that the government’s agenda is centred on restoring confidence, safeguarding livelihoods in the sugar-growing regions, and laying a firm foundation for the long-term revival of the industry.