Sugar Board pays Sh600 million to workers in lease shift
This payment aligns with the government’s larger plan to lease four state-owned sugar factories as part of efforts to revive the struggling industry.
The Kenya Sugar Board has released more than Sh600 million to sugarcane factory workers, marking a key step in settling outstanding payments owed to employees and farmers.
This payment aligns with the government’s larger plan to lease four state-owned sugar factories as part of efforts to revive the struggling industry.
Following this recent payout, the total debt has decreased from Sh5.6 billion to Sh5 billion, with a final audit still underway.
Kenya Sugar Board CEO, Jude Chesire, stated that since last year, workers have received payments totaling over Sh1.2 billion.
Chesire assured stakeholders that the leasing framework is designed to uphold the integrity and ensure the efficient operation of the factories.
He stated, "The regulations, which have been nationally validated and are soon to be officially published, include clear protective measures. The lease term of 30 years is fixed and cannot be renewed, with terms reviewed every five years and an exit provision to maintain accountability."
Addressing public concerns about the length of the lease, Chesire clarified that the extended duration is essential to attract substantial, long-term investments from private sector partners.
He explained, "This lease length provides investors with the confidence and sufficient time to commit capital and expertise, which will ultimately benefit employees, farmers, and the wider community."
The Board reiterated its dedication to transparency, accountability, and responsible oversight during the leasing process, underscoring its objective of fostering a sustainable and competitive sugar industry in Kenya.
