The Kenyan government has released Sh654 million to settle outstanding dues owed to farmers and workers. This allocation, as part of the 2023-24 financial year’s supplementary budget, underscores the government’s commitment to reforming the sector, which has faced prolonged challenges.
Agriculture Principal Secretary Kiprono Ronoh confirmed the disbursement, emphasizing that the funds are intended to support sugar industry reforms. Specifically, Sh354 million of the total amount will be directed towards clearing arrears owed to farmers by four key millers: Nzoia, Muhoroni, Chemelil, and Sony. An additional Sh150 million has been earmarked to cover three months’ worth of salary arrears for workers at Nzoia Sugar.
The remaining Sh150 million will be distributed among the other sugar companies to pay one month’s salary arrears to their workers. Despite these efforts, the amount falls short of the more than Sh5 billion owed to workers across the sector, with many expressing frustration over the insufficiency of the funds.
“This disbursement is just the first tranche, and the payment process has only begun,” explained PS Ronoh in a letter to the Agriculture and Food Authority (AFA) Director General. He acknowledged that the current payments would only cover one month of the total arrears owed by the sugar firms.
“We have received the exchequer for the appropriated budget of Sh654 million in the financial year 2023/2024 supplementary budget II support for sugar reforms,” Ronoh reiterated, highlighting the strategic importance of this financial intervention.
However, the response from unionizable workers has been less than enthusiastic. Representatives from the Kenya National Federation of Sugarcane Growers, particularly those from the Muhoroni branch, have voiced their dissatisfaction with the allocated amounts. Noah Opiyo, the branch secretary, pointed out that the arrears are insufficient for the 8,000 workers, reflecting a broader sentiment of frustration and the need for more comprehensive financial support.
The current disbursement marks a crucial step in addressing the immediate financial challenges faced by the sugar industry. However, it also underscores the pressing need for sustainable reforms and strategic investments to ensure long-term stability and growth. As the government moves forward with its reform agenda, stakeholders in the sugar industry will be watching closely, hoping for more substantial and lasting solutions.
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