Government to Clear Sugar Workers Salary Arrears of Sh 1.9 billion
The government pledge to clear the Sh1.9 billion arrears should, reinstate trust among sugar workers as well as build confidence in their reform processes.
Agriculture Principal Secretary Kiprono Ronoh . Photo/Courtesy
By Ruth Sang
The government has pledged to pay the Sh1.9 billion worth of verified salary arrears owed to workers in the four former state-owned sugar mills recently transferred to private operators. This fiscal measure is expected to relieve thousands of employees who have suffered for a long time and to further advance the revival efforts of the sugar sector.
Kiprono Ronoh, Principal Secretary for Agriculture, revealed that these arrears are already completely audited and budgeted for in the national budget, thus paving the way for prompt disbursement to those workers who qualified. He explained that those liabilities would be covered as terms agreed on during the transfer to private operators.
“The government committed during the handover of the four sugar mills to absorb part of the liabilities such as employee salary arrears,” Ronoh said. “The audited amount stands at Sh1.9 billion, and the funds have thus been set aside to ensure all verified arrears will be paid.”
Legacy financial hardships previously weighed down the four mills, thereby resulting in delayed salaries or none at all, negatively affecting the lives of workers, and, thus, causing unrest in the industry as a whole. This serves as one step close to redressing aged old labor-related grievances.
Speaking at Chemelil Sugar Company in Kisumu County, the Principal Secretary said that the government has already cleared legacy liabilities associated with transferring management of the mills into private hands. He said that statutory deductions the employees owe, remittances to various agencies, are being audited and cleared once the process is complete.
Ronoh emphasized that government intervention is to stabilize the sector and restore confidence among workers and various stakeholders. He said settling past obligations is vital to ensuring smooth transition for newly leased mills without leaving unresolved debts.
The PS says that leasing of the mills has already started to bear fruit in terms of employment. He disclosed that over 80 percent of the previous workforce had been retained by new operators and provided job security for many affected employees.
“The four mills employed about 3,500 employees at the time. With the plans they have brought before us to improve their operation, employment can grow to about 10,000 as the operation continues,” Ronoh said.
He urged private investors managing the mills to invest more in hiring more young people, since production is increasing. Increased employment, according to Ronoh, will provide households with more income and grow the economy in sugar-growing regions that heavily depend on the industry.
The Principal Secretary reassured Kenyans of the government’s commitment to fully reviving the sugar sector and noted that clearing the workers’ arrears will be part of the investment-attraction strategy toward attracting investments into the sector, which would open more employment opportunities. He added that the payment of wage arrears would help boost the morale of workers and also lay a good foundation for sustainable growth in the industry.
The government pledge to clear the Sh1.9 billion arrears should, however, reinstate trust among sugar workers as well as build confidence in their reform processes aimed at turning around the once troubled sector.
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