Chemelil, Muhoroni factories leased; workers retained
Agriculture PS Dr. Kipronoh Ronoh delivered a comprehensive update on the status of the workers at both mills in response to a parliamentary inquiry about the leasing program for state-owned sugar companies.
The future of employees at Chemelil Sugar Company and Muhoroni Sugar Factory has been clarified following the leasing of these two state-owned mills to private companies.
Agriculture PS Dr. Kipronoh Ronoh delivered a comprehensive update on the status of the workers at both mills in response to a parliamentary inquiry about the leasing program for state-owned sugar companies.
Operations at Chemelil Sugar Company have now officially been taken over by Kibos Sugar and Allied Industries Limited.
Meanwhile, Muhoroni Sugar Factory is now under the management of West Valley Sugar Company Ltd.
In his statement, Ronoh emphasized that workers will be actively involved in the operations and maintenance of the factories throughout the transition period to maintain continuity and stability.
He further explained that the new investors are expected to retain the current workforce for up to 12 months from the handover date.
During this one-year period, employees will continue to work under their existing terms and conditions.
However, Ronoh clarified that within the first six months, the investors will assess and select the employees they wish to retain moving forward.
“The government will settle all outstanding salary arrears, benefits, and any other dues owed to the employees that accumulated prior to the handover date,” the PS affirmed.
The international tender for leasing the state-owned sugar companies was advertised on February 28, 2025, and March 4, 2025, with the submission deadline set for March 25, 2025.
After receiving the bids, they were carefully evaluated and the tenders awarded.
The official handover took place on May 10, 2025.
“As it stands, the two companies have been leased for a period of 30 years, following approval by the National Assembly,” Ronoh concluded.
Prospective bidders were required to submit detailed eligibility documents, including a bid security of Sh200 million, a valid registration certificate, and a tax compliance certificate.
“The bidders who met the technical requirements by scoring 80 percent or higher advanced to the next phase of financial evaluation,” the PS explained.
