Panic as job loses loom as state sugar mills issue redundancy notices
Employees of several state-owned sugar factories are set to lose their jobs following a notice by their Managing Directors after a directive by the Ministry of Agriculture.
Among those who have already shared the Memo to employees are South Nyanza Sugar Company (Sony Sugar), which announced redundancy, effective end of October this year.
In a Memo shared by Sony Managing Director Martine Dima last week, the redundancy is due to the lease of the state-owned sugar miller to investors and the handing over of the factories to the investors, which happened in May.
“Sony Sugar wishes to notify all employees that their services with the company will terminate due to redundancy on October 31. The decision has been arrived at following the leasing of the state-owned sugar mills to investors and subsequent handing over of factories to respective investors on May 10, 2025,” the Memo stated in part.
Dima shared that the Principal Secretary for the Ministry of Agriculture and Livestock Development, Kiprono Ronoh, had already shared the communication of the redundancy last week, adding that it will comply with the 2007 Employment Act.
He added that the employees will receive their termination letters and all their pending dues and entitlements cleared before then, as stipulated by the Law.
“Individual employees will also be served with termination letters that will include, but not be limited to, employees’ entitlement under redundancy provisions as enumerated under section 40 of the Employment Act 2007 and applicable CBA. All dues and entitlements in line with provisions of the law and CBA will also be paid by then,” he added.
The letter by PS Ronoh last week instructed the state-owned sugar mills, including Sony, Nzoia, Muhoroni, and Chemilili, to issue redundancy letters to the employees.
Nzoia Sugar Company has been leased to West Kenya Sugar Company, Chemelil Sugar Company to Kibos Sugar & Allied Industries Limited, Sony Sugar Company to Busia Sugar Industry Ltd, Muhoroni Sugar Company to West Valley Sugar Company, and Miwani Sugar Company to Pandhal Industries.
The government says the private investors are expected to inject fresh capital, modernise operations, and settle outstanding liabilities in a bid to restore the competitiveness of the sector.
However, the restructuring has also triggered concerns over job losses and the fate of thousands of workers who depend on the industry.
The sugar sector remains a critical employer and economic lifeline in Western Kenya, but chronic inefficiencies, outdated machinery, and high production costs have eroded 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.
