Kenya’s Sugar Sector Revitalized Through Leasing Mills

The leasing of four public sugar mills to private operators is showing positive results, according to the Kenyan government. These changes are intended to revitalize the struggling sugar sector and improve conditions for farmers and workers.

Agriculture Principal Secretary Paul Ronoh announced that the move has led to improved factory operations and stabilized payments to sugarcane farmers. He also stated that approximately 80 percent of workers previously employed at the state-owned sugar factories have been retained by the new lease operators.

Worker Retention and Salary Payments

The government reports that around 80 percent of workers in the leased factories have been absorbed by the new operators. Addressing concerns about outstanding payments, Ronoh indicated that the government is working with labor unions to resolve salary issues and ensure employees receive their dues promptly. Meetings have been held with the union to fulfill commitments regarding back salaries and other outstanding amounts.

Benefits for Farmers

The reforms are part of a broader strategy to enhance the financial stability and operational efficiency of the sugar sector. Farmers are reportedly experiencing benefits, including receiving improved prices for their sugarcane.

Goals of the New Management Framework

The new management framework aims to improve factory efficiency, attract investment, ensure timely payments to farmers, and safeguard workers’ jobs. The government’s objective is to create a sustainable sugar sector characterized by increased earnings for farmers, efficient factory operations, and job security for workers.

Ronoh made these remarks while flagging off two million bags of fertilizer under the National Fertiliser Subsidy Programme at Athi River Railway Station, in preparation for the upcoming long rains planting season.