Nairobi — The Government will retain at least 80 percent of employees in State-owned sugar companies under the ongoing leasing of mills to private investors, Kenya Sugar Board (KSB) Chair Fredrick Gumbo has said.

He said the remaining 20 percent - mostly staff nearing retirement but still in service due to delayed exit packages - will be phased out gradually as their retirement benefits are settled.

Gumbo noted that the move aims to safeguard jobs and ensure a smooth transition as the government finalizes the privatization of struggling public sugar factories.

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The State is leasing five major sugar mills - Nzoia, Chemelil, Muhoroni, Miwani, and South Nyanza (Sony) - to private investors to boost efficiency, productivity, and profitability.

"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," Gumbo said.

He added that cane farmers are already benefiting from improved terms, with payments now issued weekly instead of monthly, a move expected to boost morale and production.

His remarks come amid growing unrest from sugar unions, which have threatened industrial action if redundancy notices take effect on October 31, 2025. Workers are also demanding settlement of Sh5 billion in salary and allowance arrears before any transition.

The government has maintained that the leasing plan is vital to restoring the industry's competitiveness, assuring that all redundancy and terminal benefits will be paid in accordance with the law.