Agriculture Cabinet Secretary Mutahi Kagwe has offered a firm assurance that the government is fully committed to settling all outstanding payments owed to workers of public sugar factories, confirming that these arrears remain a top priority for the current administration.

Speaking during a crucial meeting that brought together the Kenya Union of Sugar Plantation and Allied Workers, the Kenya Sugar Board, and representatives from the four recently leased sugar factories, the CS sought to quell concerns over delayed payments.

CS Kagwe acknowledged the nation’s current financial constraints, stating that the government is “working within fiscal realities” and is not in a position to disburse the funds immediately.

However, he made an explicit promise: “We are not refusing to pay…but every shilling due will be honoured,” adding that his office remains fully committed to ensuring that both workers and sugarcane farmers receive what they are owed.

The CS confirmed that a payment programme is already underway and that the government has also begun clearing longstanding dues owed to sugarcane farmers, signaling a simultaneous effort to resolve multiple financial liabilities within the ailing sector.

This commitment comes in the wake of a major strategic shift aimed at reviving the sugar industry, which saw the government lease four key state-owned factories Nzoia, Chemelil, Sony, and Muhoroni to private millers for a 30-year period in May 2025.

Regarding the future of the workforce, CS Kagwe intimated that the majority of existing workers from the state-owned mills will be re-absorbed by the private operators who have taken control of the facilities, while others are expected to exit through retirement schemes.

He maintained that the government’s overall objective is the complete revival of the sugar industry, asserting that the leasing program represents a strategic shift toward sustainability, efficiency, and job creation.

To ensure accountability and order in the sector under the new private management, CS Kagwe issued several strict directives.

These include the immediate commencement of full operations and urgent facility repairs at all leased factories, coupled with the mandatory strict adherence to investment commitments by the lessees.

Furthermore, to safeguard farmers’ interests and prevent unauthorized competition, the CS directed that only the CEO of the Kenya Sugar Board may authorize weighbridge operations, warning that unauthorized weighbridges and any disruptions to established cane zoning and harvesting areas will be firmly addressed and illegal weighbridges operating outside their catchment areas will be closed with immediate effect.