Boniface Kanyamwaya, a journalist at TUKO.co.ke, has more than 10 years of experience in finance, economics, business, markets, and aviation, providing insights into Kenyan and global trends.

Two sugar mills leased by the state to private investors for a period of 30 years are staring at a rough start in operation as workers have threatened to stop the full takeover by the new owners until their dues are settled.

The workers at Nzoia and Chemelil Sugar said that the new owners of the firms must pay their salaries before taking full control of operations at the sugar factories.

They have insist that the money must be paid now, as previous management refused to honour a memorandum of understanding on pending dues before handing over the firm to the new owners.

"I wish to say that there was a memorandum signed between the Kenya Union of Sugar Plantation Workers and the Ministry. Unfortunately, the state has not honoured the issues we raised in the document. We are therefore telling the government to pay us all our salary arrears owed to the employees before we transition to the new leasing arrangement," KUSPAW Assistant Secretary James Agumba told reporters on Wednesday, May 14.

Under the new government plan, four sugar mills will now be managed by private investors in Kenya.

West Kenya Sugar Company, owned by Jaswant Rai, will take over operations at Nzoia Sugar Factory.

On the other hand, Kibos Sugar and Allied Industries Ltd will manage Chemelil Sugar Company. Kibos Sugar is owned by the Chatthe family.

The other sugar firms set to be leased to private investors are Sony Sugar Company, which has been leased to Busia Sugar Industry, while West Valley Sugar Company Ltd will take over the management of Muhoroni Sugar Company.

"What I want you to understand is that no sugar factory has been sold. They have simply been leased out. We are committed to clearing workers dues one step at a time," Agriculture CS Mutahi Kagwe told on Thursday, May 15.

However, the workers remain firm, saying these plans will fail if all their pending dues are not paid.

Apart from the unpaid salaries at Nzoia and Chemelil, the staff are also demanding payment of retirees’ terminal benefits.

They also want assurance that their jobs will not be lost once the new private investors take over management of the sugar mills from the government.

The government set aside KSh 1 billion to pay workers' salaries in the four leased sugar mills.

The money will be used to pay salaries and pensions during the first year of operation in Nzoia, Chemelil, Sony, and Muhoroni sugar companies.

The public sugar mills have been leased to private investors for a perod of 30 years.

Source: TUKO.co.ke