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Workers oppose Chemelil sugar mill lease bid
Chemelil Sugar workers and the Kenya Union of Sugar Plantation and Allied Workers, Chemelil branch, protest against the lease of the company to Kibos Sugar on 29 April 2025.
Chemelil Sugar Company workers’ union has opposed an alleged 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 yesterday 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.
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.
Mr Jack Osida, Kenya Union of Sugar Plantation and Allied Workers Chemelil branch secretary addresses a press conference at the Chemelil Sugar Factory on April 29, 2025 to protest against the proposed lease of the factory to Kibos Sugar.
He also emphasised the need for continuous recognition of the union and adherence to ongoing and future CBAs.
“The new management must resolve all pending industrial relations issues before the lease takes effect. We will not allow our members to be shortchanged,” Mr Agumba warned.
The union demanded the public release of the tender details to confirm both the highest and lowest bidders.
“We also demand that union representatives be included in the transition committee to ensure accountability,” he added.
Joseph Rono, an outgrower farmer from Chemelil, echoed the resistance, stating that any handover must involve all stakeholders.
“Chemelil does not rely solely on its nucleus farm. We, the farmers, are critical suppliers of raw material and must be part of this process,” Mr Rono said.