The government’s decision to issue redundancy notices to workers in four state-owned sugar companies has sparked uproar among farmers and employees, with threats of strikes and possible legal action looming.
Kenya Association of Sugar Cane and Allied Products (KASAP) chairman, Charles Atyang’, accused the government of lacking transparency in the leasing process of Chemelil, Muhoroni, Nzoia, and South Nyanza sugar companies.
Factory management has already issued redundancy notices, putting tens of thousands of jobs on the line.
“To date, the stakeholders, especially the farmers who are supplying cane, the workers who are now being rendered redundant, were not adequately consulted on how they would be phased out once the new management takes over,” Atyang’ remarked.
In a communication to the managing directors of Chemelil, Muhoroni, Nzoia, and South Nyanza Sugar companies, the Principal Secretary, State Department for Agriculture, Dr. Paul Ronoh instructed the issuance of termination notices to employees under redundancy.
“In light of the ongoing restructuring of public sugar companies under the leasing framework, and in accordance with the provisions of Section 40 of the Employment Act, 2007 and the respective Collective Bargaining Agreements (CBAs), you are hereby directed to issue formal redundancy notices to all affected employees in your organization,” read the circular in part.
Speaking to Kenya News Agency, Atyang’ noted that affected employees will officially cease to be workers at the leased factories on October 31, 2025.
“The process, as far as we are concerned, is fraudulent, and as sugar cane farmers, we have consulted our lawyers, and in a short while, we are likely to move to court to challenge it,” Atyang’ stated.
The move, he said, has already triggered unrest at Chemelil Sugar Factory, where workers have downed their tools, demanding unpaid July salaries and clarity on their future under the leasing framework.
“They are urging the government to uphold transparency in the leasing process and clearly outline what will happen to current workers and retirees,” Atyang’ stated.
He added, “They have been evicted out of the company, yet some of them have served for over 30 years. Nobody is talking about how their terminal benefits. These are human beings. They are our daughters, sons and fathers.”
At the same time, Atyang demanded that the government makes the lease agreements public, allowing stakeholders to verify terms governing public assets.
He noted that the leased sugar companies host investments worth billions of shillings including cane estates, hospitals, and schools that serve local communities.
“In these companies, there are public and private amenities like hospitals and schools which serve the community. To date, it has not been explained how these public amenities will be managed once private investors take over,” he concluded.
By Robert Ojwang’
