The nationwide strike by sugar factory workers was suspended following high-level crisis talks between the Government and the Kenya Union of Sugar Plantation and Allied Workers (KUSPAW) held on Monday at Kilimo House, Nairobi.
The meeting was chaired by the Cabinet Secretary for Agriculture and Livestock Development, Mutahi Kagwe, and brought together Agriculture Principal Secretary Dr. Kipronoh Ronoh, Kenya Sugar Board (KSB) Chief Executive Officer Jude Chesire, Chair of the Sugar Transition Committee Harun Khator, and KUSPAW officials led by Secretary General Francis Wangara.
The industrial action, which began on January 29, 2026, affected operations at Muhoroni, Nzoia, Sony and Chemelil sugar factories, over unpaid salary arrears and terminal benefits amounting to Sh10.8 billion owed to both serving and former employees.
Following extensive deliberations, the parties agreed to suspend the strike with immediate effect, allowing workers to return to duty as payment arrangements are finalized.
The Government committed to releasing Sh1 billion within the next two weeks to ease the immediate hardship faced by workers, with the remaining arrears to be settled through the Supplementary Budget and subsequent budgets, subject to parliamentary approval.
Payments will be made in phases, covering salary arrears, redundancy dues, pensions and other terminal benefits.
Addressing the meeting, Kagwe acknowledged the hardship endured by workers and apologized for delays in honouring previous commitments, citing fiscal constraints.
He reaffirmed that the outstanding arrears are obligations of the Government of Kenya arising from the sugar sector transition process, and not liabilities of the private millers currently leasing and operating the factories.
The meeting emphasized that private millers are not party to the arrears dispute, have no direct dispute with unions regarding the legacy obligations, and that industrial action directed at private operators does not address the root cause of the problem.
“There is no justification for striking against third parties who were not privy to the agreements that created these arrears,” Kagwe said, warning that targeting private investors only prolongs worker suffering, disrupts factory operations and undermines recovery of the sugar sector.
The Cabinet Secretary appealed to Parliament—particularly legislators from sugar-growing regions—to support and fast-track the allocation of funds through the Supplementary Budget to conclusively resolve the matter.
KUSPAW Secretary General Francis Wangara welcomed the renewed Government commitment, noting that many former workers are facing severe hardship, 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 flagged for urgent follow-up with millers and investors.
KSB CEO Jude Chesire said the Board would continue engaging millers and unions, urging all parties to maintain stability to allow factories to operate and generate revenue necessary to sustain the sector.
CS Kagwe condemned destruction of property, intimidation and other unlawful acts, while reaffirming that peaceful demonstrations are protected by law. He said security agencies have been directed to restore and maintain normalcy in all affected areas.
The Ministry of Agriculture, Kenya Sugar Board, National Treasury and KUSPAW will maintain close coordination to monitor disbursements, compliance by millers, and the resolution of outstanding labour issues, including the reinstatement of suspended employees where applicable.
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