The government has disclosed the fate of employees at Chemelil Sugar Company and Muhoroni Sugar Factory following the leasing of the two state-owned mills to private investors.
Appearing before Parliament, Agriculture Principal Secretary Dr Kipronoh Ronoh confirmed that Kibos Sugar and Allied Industries Limited has officially taken over operations at Chemelil Sugar Company, while West Valley Sugar Company Ltd is now managing Muhoroni Sugar Factory.
Ronoh explained that the current workers at both companies will remain actively involved in operations and maintenance during the transition phase to ensure stability and continuity.
He stated that the new investors are required to retain the existing workforce for a maximum of 12 months from the handover date, under the same terms and conditions of service.
“The investors shall retain the current workers for a period not exceeding 12 months from the handover date. During the first six months, they will assess and identify which employees to keep going forward,” said Ronoh.
He further assured that all salary arrears, benefits, and any outstanding emoluments owed to workers before the handover will be settled by the government.
The handover of the two companies took place on May 10, 2025, following a competitive international tendering process advertised on February 28 and March 4, with the deadline for submission on March 25.
Ronoh told Parliament that the mills have been leased for a period of 30 years, with the arrangement receiving approval from the National Assembly.
To qualify, bidders were required to meet strict eligibility requirements, including a Sh200 million bid security, valid registration and tax compliance certificates.
“Only bidders who attained at least 80 per cent in the technical evaluation proceeded to the financial assessment stage,” he added.
