Nzoia sugar company chairman Alfred Khang’ati(in cap) addressing the press .
By Timothy Wekesa.
Bungoma, Dec. 2, 2024.
The Nzoia Sugar Company continues to face a tumultuous period as workers protest over nine months of unpaid wages, totaling billions in arrears.
The demonstrations escalated when workers blocked the management’s access to the factory, prompting the removal of Board Chairman Alfred Khang’ati.
The unrest underscores the growing discontent among employees and farmers who have accused the management of mismanagement and neglect.
In his response before stepping down, Khang’ati defended his tenure, saying,
“When I assumed office in early 2023, Nzoia was drowning in historical debts exceeding Ksh. 2 billion, and operations were at a standstill.
Despite these challenges, my team has managed to significantly reduce liabilities and resume some operations.
However, long-term solutions require joint efforts from all stakeholders.”
Khang’ati attributed the crisis to systemic failures in the sugar industry, declining global sugar prices, and inadequate support for factory upgrades.
He urged the government to expedite its reform agenda: “This factory is the economic lifeline for Bungoma. Reviving it is not just a local concern but a national priority.”
A Legacy of Challenges.
Founded to spur economic growth in Western Kenya, Nzoia Sugar has been plagued by financial instability, operational inefficiencies, and leadership wrangles.
Recent audits revealed that the factory owes Ksh. 1.6 billion, including Ksh. 257 million to farmers and over Ksh. 170 million to casual workers【8】【9】.
Attempts to address these issues have often faltered. President William Ruto’s initiative to waive Ksh. 110 billion in state sugar factory debts and implement new leasing models has seen slow progress.
This has left factories like Nzoia grappling with outdated machinery, high production costs, and mounting arrears.
Economic Importance.
Nzoia Sugar directly employs over 1,000 staff and contracts 67,000 farmers, providing critical support to Western Kenya’s economy.
Its influence extends to transporters, traders, and small businesses reliant on its operations.
The factory’s decline has exacerbated poverty levels in Bungoma and neighboring regions, highlighting the urgency of its revival.
The Path Forward.
Managing Director Hezron Kotut has assured stakeholders of ongoing efforts to resume operations and prioritize debt repayment.
Local leaders, including Governor Kenneth Lusaka, have emphasized unity and called on political actors to avoid sabotaging revival efforts through divisive politics.
Lusaka noted: “Nzoia Sugar’s revival is critical to restoring livelihoods and spurring regional economic growth. It must be a shared responsibility.”
As workers and farmers demand immediate solutions, the government’s ability to implement reforms and attract private sector investment will determine whether Nzoia Sugar reclaims its status as a regional economic hub or continues its downward spiral.
Ends.
