The Kenya Sugar Board has disbursed over KSh 600 million to sugarcane factory workers, marking a significant step toward fulfilling its commitment to settle outstanding debts owed to employees and farmers. This follows the government’s initiative to lease four state-owned sugar factories as part of the sector’s revitalization efforts.
The latest payment reduces the total outstanding debt from KSh 5.6 billion to KSh 5 billion, subject to final audit. According to Kenya Sugar Board CEO Mr. Jude Chesire, the total amount paid out to workers since last year has now surpassed KSh 1.2 billion.
Mr. Chesire assured stakeholders that the leasing arrangement will not compromise the proper management of the factories. “The regulations, which have undergone national validation and are set to be gazetted, provide clear safeguards,” he said. “The 30-year lease period is non-renewable, with a review of terms every five years and an exit clause included to ensure accountability.”
Addressing public concerns over the length of the lease, Mr. Chesire emphasized that the period offers investors ample time to make meaningful, long-term investments that will benefit all stakeholders—workers, farmers, and the broader community.
The Board reaffirmed its commitment to transparency and responsible oversight throughout the leasing process as it continues working towards a sustainable future for Kenya’s sugar industry
