Nairobi: The government's decision to issue redundancy notices to workers in four state-owned sugar companies has sparked uproar among farmers and employees, with threats of strikes and possible legal action looming.
According to Kenya News Agency, Kenya Association of Sugar Cane and Allied Products (KASAP) chairman, Charles Atyang', accused the government of lacking transparency in the leasing process of Chemelil, Muhoroni, Nzoia, and South Nyanza sugar companies. Factory management has already issued redundancy notices, putting tens of thousands of jobs on the line.
Atyang' remarked that stakeholders, particularly farmers supplying cane and workers now facing redundancy, were not adequately consulted on their phase-out as new management prepares to take over. In a communication to the managing directors of the affected companies, Dr. Paul Ronoh, Principal Secretary of the State Department for Agriculture, instructed the issuance of termination notices to employees under redundancy.
The circular, addressing the restructuring of public sugar companies under a leasing framework, aligns with Section 40 of the Employment Act, 2007, and respective Collective Bargaining Agreements (CBAs). Atyang', speaking to Kenya News Agency, noted that affected employees would officially cease to be workers at the leased factories on October 31, 2025.
Atyang' further explained that the process is considered fraudulent by sugar cane farmers, who are consulting legal counsel and may soon challenge it in court. The move has already triggered unrest at Chemelil Sugar Factory, with workers downing tools to demand unpaid July salaries and clarity on their future under the leasing framework.
He emphasized the need for government transparency in the leasing process, urging clear communication about the fate of current workers and retirees. Atyang' highlighted the eviction of long-serving employees without discussions on their terminal benefits, emphasizing their human impact as community members.
Additionally, Atyang demanded public disclosure of lease agreements to verify terms governing public assets. He noted the significant investments in the affected companies, including cane estates, hospitals, and schools serving local communities, raising concerns about the management of these public amenities once private investors take control.