The irony of Ruto's sugar revival plan targeting mass layoffs

The paradox that is President William Ruto's administration's efforts to revive the sugar sector is deepening as the realities of the pending mass layoffs of workers continue to cloud the industry.

It was a process that was tipped to breathe life into a sector that was on its knees and create employment, but has turned into a nightmare for thousands of workers in the leased state-owned factories.

But if all goes according to the government plans, at least 1,500 workers in Muhoroni Sugar factory will be jobless while about 1,700 permanent workers at Nzoia Sugar factory are also going to be affected.

Additionally, some 5,000 casuals at Nzoia are also on the verge of losing jobs once the layoff is completed. Consequently, some 150,000 households that depend on the company will be affected.

The same fate awaits some 1,500 workers at Sony Sugar in Migori, even as the affected workers decry millions of arrears in unpaid salaries.

The Kenya National Federation of Sugarcane Farmers, Sony Branch chairman John Omollo said the retrenchment of Sony Sugar workers is against the will of the community.

According to Omollo, Sony was established to address unemployment in the Sugar Belt region and the county at large.

"What the government is doing is against the will of the people," Mr. Omollo said.

The planned layoffs have ushered in anxiety in sugar-growing belts of Nyanza and Western, and have been criticized by leaders across the political fold.

They believe the process is steering away from its objective of creating jobs and is bound to worsen unemployment and ultimately kill a sector that has been on its deathbed and crippled by bad government policies.

And now, the planned layoffs appear to have hit a snag after the Central Organisation of Trade Unions in Kenya (Cotu) rejected an invitation to a committee to oversee the layoff process.

Cotu has turned down the offer to join a tripartite committee to deliberate on the process that will be undertaken and instead took the Labour Ministry for presiding over the loss of jobs against its core mandate of looking into the creation of more opportunities for Kenyans.

Leaders from the region, including Kisumu and Trans Nzoia governors, have also opposed the planned layoffs that the Agriculture Ministry announced in August, noting it would undermine the economy of the sugar belt that is already grappling with high unemployment. 

Five millers were handed over to private sector firms under the government leasing programme that it said would revive the sector in May this year. The private millers are supposed to revamp the sugar millers.

The Agriculture Ministry on August 12 directed the management of sugar millers to issue redundancy notices to employees.

This was followed up by an invitation by the Ministry of Labour to players, including Cotu, to form a committee that would steer the redundancy process.

In a letter to Cotu, the Commissioner of Labour requested to nominate at least one officer to the Committee. The tripartite committee would be made up of representatives from the government, the private millers now running the sugar companies and the workers. 

The giant workers’ union has however rejected the invitation, arguing against redundancy and adding that the Ministry should instead be looking at ways to increase employment creation and not kill existing jobs. 

“Cotu is not prepared, now or in the future, to participate in a meeting chaired by the Ministry of Labour to discuss how to declare workers redundant. As Cotu, we shall only take part in a meeting to discuss how to bake a bigger cake in order to create more employment opportunities,” said Francis Atwoli, Secretary General Cotu in an October 3 letter responding to the Ministry's invitation to be part of the committee.

“It is deeply concerning that the Ministry, whose central mandate is employment creation, would convene a meeting to discuss redundancy at a time when the unemployment crisis in our country is acute. As Cotu, we believe that it is through the Ministry of Labour that we can collectively support the President in generating meaningful employment, particularly for the growing number of young people leaving institutions of learning in search of work. We strongly believe that these opportunities can be found, among other areas, in the agricultural sector, sugar industry included.”

“Cotu therefore respectfully declines to participate in the proposed meeting on redundancy and instead calls for urgent consultations on strategies to expand employment opportunities in line with the Ministry’s founding mission.”

Atwoli further stated that it is also part of the Labour Ministry’s mandate to protect the interest of the worker “who is universally recognised as the weaker party”. 

“Much more importantly, the Ministry of Labour Was created to foster an enabling environment for workers, employers and the government through sound

Under the leasing programmes, private firms will run the sugar millers for 30 years, and the government sees this as critical in reviving the struggling sugar sector. The private millers are expected to inject capital, modernise operations and settle outstanding liabilities.

Nzoia Sugar Company was handed over to West Kenya Sugar Company, Chemelil Sugar Company to Kibos Sugar & Allied Industries Limited, Sony Sugar Company to Busia Sugar Industry Ltd and Muhoroni Sugar Company to West Valley Sugar Company.

The process is, however, now expected to result in job losses, with the thousands of workers who depend on the industry now uncertain about their future. 

“In light of the ongoing restructuring of public sugar companies under the leasing framework… you are hereby directed to issue formal redundancy notices to all affected employees in your organisation,” said Kipronoh Ronoh, Principal Secretary of Agriculture in an August 12 directive the bosses of the sugar millers that have been leased out.

While it remains a critical employer and economic lifeline in Western Kenya, chronic inefficiencies, outdated machinery and high production costs have cast doubt on its viability. Authorities insist that the leasing is the most viable route to returning the millers to profitability and safeguarding the livelihoods of sugarcane farmers.

Leaders from the region, including Kisumu Governor Anyang’ Nyong’o and Trans Nzoia Governor George Natembeya, have raised concerns about the planned layoffs noting the impact that this would have on an area that is dependent on sugar sector but also grappling with high levels of unemployment.

In Migori County, a total of 1, 500 workers,  both contracted and permanent by Sony Sugar, have been affected by the redundancies announced by the old Sony Sugar Company which was government-led after leasing the sugar milling to a private investor who owns Busia Sugar Industries Limited.

However, according to a circular dated September 25, the leasee has extended an olive branch to the workers, giving them room to reapply for the positions they previously held.

The letter by the company's Executive Chairman Ahmed Taib, indicated that lease agreement with the government required changes in employment contracts.

The circular addressed only to current employees directing those who wished to work with the new company to submit written applications for the jobs they currently hold.

According to the circular, the employees are required to do two copies of application letters and attach a photocopy of their IDs, employment letters, and pay slips by October 10, 2025.

However, he said if the workers were going to be reabsorbed again, then they would support the move.

Similarly, workers at Chemelil and Muhoroni sugar are also facing uncertain times as the government pursues their unemployment through the process.

On Friday, a worker who is also on his way out claimed that they do not have faith in retaining their jobs and described the move as unfortunate.

Among those affected are top-level and junior-level management, alongside other cadres of workers.