Sugar workers in Kenya have called off a nationwide strike after the Ministry of Agriculture pledged to release about US$7.7 million within two weeks to cover unpaid salaries and terminal benefits, the ministry said.
The strike, which began on Jan. 29, disrupted operations at state-owned Muhoroni, Nzoia, Sony and Chemelil sugar factories. Workers had stopped work to protest unpaid salary arrears, pensions and other benefits estimated at US$83 million, owed to both current and former employees.
Following high-level talks at Kilimo House in Nairobi between government officials and labour unions, the Ministry of Agriculture said the industrial action had been suspended with immediate effect.
“The nationwide strike by sugar factory workers has been called off following crisis talks held today between the government and the Kenya Union of Sugar Plantation and Allied Workers,” the ministry said in a statement. “Workers will return to duty as payment processes are finalised.”
The ministry said the initial $7.7 million tranche would be released within 14 days and would cover part of the salary arrears, redundancy payments, pensions and other terminal benefits for workers at the four factories.
The remaining balance of about US$69 million will be settled through supplementary and subsequent national budgets, subject to approval by parliament, officials said.
Agriculture Cabinet Secretary Mutahi Kagwe, who chaired the talks, acknowledged the government’s responsibility for the arrears and urged lawmakers to fast-track budget approvals to stabilise the sugar sector.
“As the government, we accept responsibility for these debts. The arrears are owed by the government, not private millers,” Kagwe said. “We will push parliament hard to resolve this matter conclusively through the supplementary budget so that the sugar sector is stabilised once and for all.”
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The strike had raised concerns about prolonged disruptions in an industry already under strain from high production costs, ageing equipment and competition from cheaper sugar imports. Kenya’s sugar sector employs tens of thousands of workers directly and supports millions of livelihoods in western Kenya through farming, transport and related services.
Union officials said the payment commitment had eased immediate tensions but warned that deeper structural problems remain unresolved.
While welcoming the suspension of the strike, the Kenya Union of Sugar Plantation and Allied Workers (KUSPAW) said other longstanding issues continue to affect workers. These include delayed remittance of union deductions, poor employment terms in some factories, alleged non-compliance with transition agreements and reported intimidation of union officials.
“The suspension of the strike addresses the immediate wage arrears, but broader labour and governance concerns in the sector still need urgent attention,” a union representative said.
The ministry and the unions stressed that the arrears dispute applies only to government-owned sugar factories and does not involve private sugar mills, which operate independently and are not affected by the unpaid benefits.
Kenya has been pursuing reforms to revive its sugar industry, including leasing state-owned mills to private operators, clearing historical debts and improving cane supply management. Progress has been uneven, with funding gaps and recurring labour disputes slowing implementation.
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Analysts say the government’s ability to clear the remaining US$69 million in arrears will depend heavily on parliamentary approval at a time when Kenya faces tight fiscal conditions and competing budgetary demands.
For now, factory operations are expected to resume gradually as workers return to duty, easing fears of prolonged production disruptions in the sector.
