Nairobi — Sugar factory workers have suspended the nationwide strike following high-level crisis talks between the Government and the Kenya Union of Sugar Plantation and Allied Workers (KUSPAW)
The deal was reached today following a meeting at Kilimo House chaired by the Cabinet Secretary for Agriculture and Livestock Development, Mutahi Kagwe.
The talks brought together senior officials, including Agriculture Principal Secretary Kipronoh Ronoh, Kenya Sugar Board (KSB) Chief Executive Officer Jude Chesire, Chair of the Sugar Transition Committee Harun Khator, and KUSPAW leaders led by General Secretary Francis Wangara.
The industrial action, which began on January 29, 2026, had affected workers at Muhoroni, Nzoia, Sony and Chemelil Sugar Factories over unpaid salary arrears and terminal benefits totaling KSh10.8 billion, owed to both serving and exited employees.
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Following extensive deliberations, the parties reached a consensus that will see workers return to duty as the Government moves to clear the arrears.
Under the agreement, the strike has been suspended with immediate effect, while KSh1 billion will be released within the next two weeks to cushion workers facing acute hardship.
The remaining balance will be settled through the Supplementary Budget and subsequent budgetary allocations, with Parliament formally engaged to approve the required funding. Payments will be made in phases to cover salary arrears, redundancy dues, pensions and other terminal benefits.
Addressing the meeting, CS Kagwe acknowledged the difficulties endured by workers and apologized for delays in honoring earlier commitments, citing fiscal constraints.
He reaffirmed that the outstanding arrears are obligations of the Government of Kenya arising from the sector transition process, and not liabilities of the private millers currently leasing and operating the factories.
"As Government, we accept responsibility for these debts," CS Kagwe said.
" The arrears are owed by the Government, not private millers. We will push Parliament hard to resolve this matter conclusively through the Supplementary Budget so that the sugar sector is stabilized once and for all."
He emphasized that private millers are not party to the arrears dispute, have no direct dispute with unions over legacy obligations, and that industrial action directed at factory operations or investors does not address the root cause of the problem.
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Kagwe cautioned that targeting third parties only prolongs worker hardship, disrupts production and undermines recovery efforts in the sugar sector.
The Cabinet Secretary further appealed to Members of Parliament, particularly those from sugar-growing regions, to support and fast-track the required allocations, while reiterating that Government-owed obligations must be resolved through budgetary processes.
KUSPAW General Secretary Francis Wangara welcomed the renewed Government commitment, noting that workers who exited service are facing severe challenges, including lack of housing, medical cover and basic livelihoods.
"We have agreed to suspend the strike in good faith as we monitor the release of funds and implementation of agreed milestones. Workers have suffered long enough, and this matter must now be resolved conclusively," Wangara said.
The union also raised concerns over delayed remittance of union deductions, poor and exploitative employment terms in some factories, non-compliance with agreed transition arrangements including worker retention levels, and alleged intimidation of union officials.
These issues were noted for urgent follow-up and engagement with millers and investors.
KSB CEO Jude Chesire affirmed continued engagement with all stakeholders, urging stability to allow factories to operate and generate revenues needed to sustain the sector.
CS Kagwe condemned destruction of property, intimidation and other unlawful acts, while reaffirming that peaceful demonstrations are protected by law.
