The Kenya Union of Sugar Plantation and Allied Workers (KUSPAW) has insisted that all workers in the recently leased sugar factories must be absorbed by the new management. The union has warned of possible industrial action if the demand is ignored.

This follows redundancy notices issued by Muhoroni and South Nyanza (Sony) sugar companies, informing staff that their contracts will end on October 31, 2025. The notices were issued in line with a directive from the Ministry of Agriculture and the Employment Act, 2007, as part of the handover of factories to private investors.

KUSPAW Secretary General Francis Wangara has, however, assured workers that the notices do not amount to automatic job losses. He said the redundancy letters were a procedural requirement to allow for a smooth transition from government receivership to private management.

“We are saying everybody must be reabsorbed, not a chance. The operations of the companies should continue the way they have been operating. Nobody should be forced to leave employment,” Wangara said on Monday, August 25, 2025.

He explained that the only workers who should exit are those who have reached retirement age or those who volunteer to leave.

“The rest should be taken and continue working under the same terms they have been earning,” he added.

Union demands salary settlement

The union is also pushing for the government to clear all pending salaries and accrued benefits by the end of October. Wangara earlier said this will help ease the transition and protect employees from financial hardship.

Agriculture Principal Secretary Kipronoh Rono had earlier directed the factories to issue formal redundancy notices to staff, stating that they should clearly outline reasons for termination, entitlements, and assurances that dues will be paid in full.

KUSPAW has appealed to the new lessees to retain as many employees as possible and is engaging transition committees to safeguard workers’ welfare. Wangara noted that some investors had already indicated a willingness to keep their entire workforce.

The leasing of Nzoia, Sony, Chemelil and Muhoroni sugar companies is part of the government’s wider plan to revive the troubled sugar industry. The sector has been plagued by debt, mismanagement, and outdated equipment, which have hurt cane farming and factory output.

With fresh capital expected from the private investors, the government hopes to modernise operations and boost productivity. But as the October deadline draws closer, thousands of workers remain anxious, waiting to see if their jobs will be secured under the new management.