Sugar factory workers across the country have suspended their nationwide strike after successful negotiations between the Government and the Kenya Union of Sugar Plantation and Allied Workers (KUSPAW). The Agriculture Cabinet Secretary Mutahi Kagwe chaired the discussions which included union leaders and government officials who worked to resolve worker complaints.
The strike which started on January 29 2026 made operations impossible at several major sugar factories including Muhoroni and Nzoia and Sony and Chemelil. Workers stopped their work because they wanted to get paid their salary arrears and terminal benefits which amounted to Sh10.8 billion.
Agreement Reached on Return to Work
The Government and KUSPAW agreed during the meeting that workers must return to their jobs because the government was completing the process of paying them all their due payments. The agreement brought an end to the industrial action which allowed factory operations to start recovering their normal state.
The union representatives showed approval of the progress achieved in the discussions because the Government's commitment provided financial assistance prospects to the workers who faced economic difficulties from unpaid salaries.
Sh1 Billion to Be Released Immediately
To meet worker needs the Government plans to provide Sh1 billion within two weeks. The funds will help employees who have not received their complete pay and benefits for an extended period to overcome their current financial problems.
Officials explained that officials would not make a single payment to settle the remaining unpaid amounts. The process will start with supplementary budget payments which will continue until all payments through budget allocations receive approval from Parliament.
Arrears to Cover Multiple Benefits
The agreement states that workers will receive their payments through phased delivery which will cover different types of dues. Workers will receive payment for their salary arrears and their redundancy payments and their pensions and their other terminal benefits. The structured approach is meant to ensure all verified claims are addressed in an orderly and sustainable manner.
Government Acknowledges Workers’ Struggles
Agriculture CS Mutahi Kagwe recognized the difficulties sugar workers have faced due to delayed payments. He offered an apology for the prolonged delays and explained that the situation had been influenced by fiscal constraints facing the government.
Kagwe assured workers that the Government will continue to fulfill its commitments while it works to stabilize the sugar industry which supports many livelihoods in the agricultural economy.
Hope for Stability in the Sugar Sector
The cancellation of the strike marks a potential turning point for the sugar industry which has experienced continuous financial and operational problems. The workers must return to their stations because the payment plan needs to get implemented along with the long-term reforms which will stop similar disputes from happening again.
The deal has brought temporary relief to both workers and factory management who are working to rebuild productivity and confidence in the industry.
![]()
