Kenya Sugar Board disburses Ksh.600M to factory workers in leasing transition

The payout comes as part of the government's broader initiative to lease four state-owned sugar factories under a revitalisation plan for the struggling sector.

With this latest disbursement, the total debt burden has been reduced from Ksh.5.6 billion to Ksh.5 billion, pending a final audit.

According to Kenya Sugar Board CEO Mr. Jude Chesire, the total amount paid out to workers since last year now exceeds Ksh.1.2 billion.

Mr. Chesire reassured stakeholders that the leasing framework is structured to protect the integrity and efficient management of the factories.

“The regulations, which have undergone national validation and are set to be gazetted, provide clear safeguards,” he said. “The 30-year lease period is non-renewable, with a review of terms every five years and an exit clause to ensure accountability.”

Responding to public concerns over the lease duration, Mr. Chesire explained that the extended timeframe is necessary to encourage meaningful, long-term investments by private sector partners.

“This lease period gives investors the confidence and time needed to inject capital and expertise that will ultimately benefit workers, farmers, and the broader community,” he added.

The Board reaffirmed its commitment to transparency, accountability, and responsible oversight throughout the leasing process, emphasizing its goal of building a sustainable and competitive sugar industry in Kenya.