The government has dismissed reports that over 5,000 workers in the sugar industry will lose their jobs in the ongoing leasing of public mills to private investors.

In a statement shared on X, on Monday, October 4, 2025, the Ministry of Agriculture and Livestock Development said 80 per cent of sugar workers will be retained once the mills resume operations under new management.

Kenya Sugar Board Chairperson Nicholas Gumbo said the leasing plan is meant to revive struggling factories and create more jobs, not eliminate them.

“Eighty per cent of the current workforce will be absorbed by private millers,” Gumbo said. “The remaining 20 per cent, mostly those due for retirement, will be gradually phased out in line with retirement benefits settlements.”

Gumbo described the transition as a silver lining for the industry, saying it will allow for modernisation and full maintenance of key factories, including Sony, Chemelil, Muhoroni and Nzoia. He noted that once the mills run at full capacity, sugar production could double to 1.6 million tonnes annually, turning Kenya into a potential net exporter.

Also watch: President William Ruto speaks on the new plan to revive the sugar sector.

Union raises fresh concerns

The assurance comes weeks after the Kenya Union of Sugar Plantation and Allied Workers (KUSPAW) demanded that all workers be reabsorbed during the transition. The union had raised concerns following redundancy notices issued by some sugar companies, warning of industrial action if jobs were lost after October 31, 2025.

Gumbo said the government’s decision to lease the mills is based on economic necessity, explaining that the factories have not made profits for the past three decades. He added that private investment will bring in new technology and capital to increase efficiency and reduce losses.

He also noted that farmers are already benefiting from improved terms, including weekly payments for cane deliveries instead of the previous monthly or seasonal arrangements. The change, he said, is expected to boost farmer morale and production.