Kenya, January 24 2026 - More than 30,000 workers employed in four major sugar companies have issued a strike notice after months of failed government promises to settle outstanding salary arrears and benefits totaling KSh10.8 billion.
The announcement was made by Kenya Union of Sugar Plantation and Allied Workers (KUSPAW) General Secretary Francis Wangara, who said that repeated assurances from government officials that payments would be made have not been honoured, leaving workers with mounting financial hardship. Workers are set to down tools next Thursday if the arrears are not paid and reflected in their accounts.
“The government made a commitment to release a partial payment of KSh4 billion before December, including KSh1.9 billion in salary arrears due by the end of November… but nothing has been paid,” Wangara said at a press briefing in Kisumu.
The strike notice follows months of frustration within the sugar sector, which has been plagued by financial distress, restructuring and unpaid wages. Workers say they have suffered long periods without pay despite assurances from authorities that arrears would be cleared progressively.
Under a government-led sugar sector reform programme, four key state-owned factories — Nzoia, Chemelil, Sony and Muhoroni, were leased to private investors in 2025 as part of efforts to revive the industry and attract new capital.
Although the reform blueprint envisaged the government settling salary arrears and benefits for workers and farmers before and during the transition, these commitments have not been fully met, analysts and unions say.
Parliament records show that partial payments of arrears have been made, but significant balances remain outstanding and scheduled instalments have lagged, raising tensions among workers. Kenya’s sugar industry has long struggled with inefficiency, outdated equipment, poor supply chain planning and financial distress among its mills.
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The temporary closure of some milling operations in 2025 to implement reforms, and the imposition of the Sugar Development Levy, reflect deeper structural challenges within the sector. Union leaders and county politicians have criticised the slow pace of arrears payment and the handling of layoffs and redundancies, arguing that government commitments are not matched by action.
In 2025, Central Organisation of Trade Unions (COTU) clashed with labour authorities over redundancies tied to mill restructuring, accusing officials of abandoning job creation priorities amid already high unemployment.
Past protests and stoppages have also highlighted long-standing wage issues at sugar companies. For instance, in 2025, Sony Sugar workers downed tools to demand KSh350 million in unpaid wages, illustrating persistent payment disputes even before the larger arrears crisis erupted.
The looming strike affects not only workers but also thousands of families and local economies in sugar-producing counties across Western and Nyanza regions. Many households in these areas rely on regular pay from mills to meet basic needs such as school fees, food and healthcare, and disruptions could add to economic stress in communities where alternative employment opportunities are limited.
Trade unions argue that failure to address salary arrears in a timely and transparent manner could undermine confidence in ongoing reform efforts and jeopardise social stability in the sector. To date, the Ministry of Agriculture has not publicly responded to the latest strike notice.
However, earlier government statements acknowledged arrears as a priority and outlined phased payment plans as part of the sugar sector recovery strategy. With the strike deadline approaching, pressure will intensify on both government and private mill operators to address the arrears and avert an industrial stoppage that could further disrupt the already fragile sugar sector.

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