Workers oppose Chemelil sugar factory lease plans

Jack Osida, Branch Secretary of the Kenya Union of Sugar Plantation and Allied Workers (Kuspawu Chemelil Branch), addresses media during a press conference at Chemelil Sugar Factory on April 29, 2025, protesting the planned leasing of the company to Kibos Sugar. 

Photo credit: Alex Odhiambo | Nation Media Group

Chemelil Sugar Company workers’ union has opposed a reported plan to lease the troubled miller to Kibos Sugar and Allied Industries Limited.

The workers, through the Kenya Union of Sugar Plantation and Allied Workers (Kuspaw), claimed that the State planned to hand the deal to Kibos which was ranked as the lowest bidder.

“As we speak today, we are informed that the management has been called for an urgent meeting to the Ministry of Agriculture headquarters in Nairobi to hand over before the planned takeover by Kibos Sugar,” said Jack Osida, secretary of the Kuspawu branch.

The hundreds of workers who protested on Tuesday raised concerns about the government’s handling of the leasing process, citing a lack of public participation and a rushed approach that violated proper procedures.

The union raised concerns over Kibos Sugar’s labour track record, pointing to past incidents where union officials were dismissed and the company allegedly dismantled union structures within its ranks.

“Kibos has never had an active union. Their history with workers’ rights is worrying,” said Mr Osida.

Salary arrears

The workers demanded the government settle all arrears the company owes them before effecting any lease agreement.

“These include salary arrears amounting to Sh1.3 billion, retirees’ terminal dues, and a clear job security framework for current employees,” he said.

The union also said all the employees must be paid all pending benefits before transitioning to any new arrangement.

“Any workers retained under the new lessee must maintain their current terms and conditions as stipulated in the existing collective bargaining agreement,” said branch assistant secretary James Agumba.

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