Government assures no job losses amid privatization of sugar mills

Kenya Sugar Board Chairperson Nicholas Gumbo said on Monday that 80% of the current workforce will be absorbed by private millers, while the remaining 20%, mostly staff due for retirement, will be gradually phased out in line with retirement benefits settlements.

Gumbo noted that the modernization and full maintenance of factories among them Sony, Chemelil, Muhoroni, Miwaniand Nzoia will raise efficiency and unlock more jobs.

“Once these mills run at full capacity, sugar production is expected to double to 1.6 million tonnes annually, positioning Kenya as a potential net exporter of sugar,” he said.

Cane farmers are currently benefitting from weekly payments, a bump from the previous monthly or seasonal payments, a move Gumbo says will boost farmer morale and production.

The remarks come against a backdrop of worker unrest, with unions warning against sidelining employees and threatening industrial action if redundancy notices take effect on October 31, 2025.

Many workers are also demanding the settlement of Ksh.5 billion in salary and allowance arrears before any transition.

In May 2025, Ksh.600 million was disbursed to sugarcane factory workers, marking a significant milestone in its efforts to clear outstanding debts owed to employees and farmers.

The government, however, insists the leasing plan is crucial for restoring competitiveness in the sugar industry, assuring that all redundancy and terminal benefits will be honored as per the law.