Kenya's Sugar Workers End Strike After Government Promises £65 Million Settlement

2026-02-04 region

Nairobi, 4 February 2026
Thousands of Kenyan sugar workers have returned to work following a breakthrough agreement that will see the government pay 10.8 billion Kenyan shillings in outstanding wages. The five-day strike, which began on 29 January and halted production at four major sugar factories including Muhoroni and Nzoia, ended after Cabinet Secretary Mutahi Kagwe promised an initial one billion shilling payment within two weeks. The industrial action had threatened sugar supplies across East Africa, including deliveries to refugee camps, highlighting the sector’s regional importance and workers’ desperation for wages owed since factories transitioned to private management.

Strike Resolution and Immediate Impact

The nationwide strike by sugar factory workers was officially suspended on 3 February 2026 following high-level negotiations between the Government and the Kenya Union of Sugar Plantation and Allied Workers (KUSPAW) [1]. Cabinet Secretary for Health and Industrial Affairs Mutahi Kagwe chaired the discussions and apologised for delays in payments, attributing them to fiscal constraints [1]. The industrial action had affected operations at Muhoroni, Nzoia, Sony, and Chemelil sugar factories, forcing temporary production halts across these key facilities [1]. Workers agreed to return to duty immediately whilst the Government finalises payment processes, marking an end to disruptions that had threatened both domestic sugar supplies and regional exports [1].

Financial Framework and Payment Schedule

Under the agreement reached, the Government committed to releasing KSh1 billion within two weeks of 3 February 2026, establishing a deadline of 17 February 2026 for the initial payment [1][5]. The remaining arrears totalling KSh10.8 billion will be addressed through phases via the Supplementary Budget and future budget allocations, subject to parliamentary approval [1]. Cabinet Secretary Kagwe emphasised that ‘the arrears are owed by the Government, not private millers’ and pledged to ‘push Parliament hard to resolve this matter conclusively through the Supplementary Budget so that the sugar sector is stabilised once and for all’ [5]. This structured approach aims to provide immediate relief whilst establishing a sustainable framework for clearing the substantial debt accumulated during the transition of sugar factories to private management [1].

Workers’ Concerns and Union Response

KUSPAW General Secretary Francis Wangara welcomed the renewed Government commitment but maintained that ‘many workers, particularly those who have exited service, face severe hardship’ [1]. The union expressed particular concern over delayed union deductions, which will be addressed in follow-up discussions [1]. Wangara stated that the union had ‘agreed to suspend the strike in good faith as we monitor the release of funds and implementation of agreed milestones’, whilst emphasising that ‘workers have suffered long enough, and this matter must now be resolved conclusively’ [5]. The strike had begun on 29 January 2026 due to the government’s alleged failure to meet previous commitments to settle arrears accumulated during the factories’ transition to private management [1].

Regional Implications for Sugar Supply

The resolution of this labour dispute carries significant implications for sugar availability across East Africa, where Kenya’s production plays a crucial role in regional food security [GPT]. The temporary halt in operations at four major sugar factories had raised concerns about supply disruptions and revenue losses, potentially affecting not only domestic markets but also critical deliveries to refugee camps and other humanitarian operations that depend on consistent sugar supplies [1]. The Government’s commitment to stabilising the sugar sector through this comprehensive settlement demonstrates recognition of the industry’s strategic importance beyond Kenya’s borders, particularly given the region’s interconnected food distribution networks [GPT]. With workers now returning to production, the immediate threat to regional sugar supplies has been averted, though the successful implementation of the payment schedule will be crucial for preventing future disruptions [1][5].

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strike settlement sugar industry