Statement on the revival of Miwani Sugar Company and payment of outstanding salary arrears to its workers

Wednesday, 5 March, 2025

Statement on the revival of Miwani Sugar Company and payment of outstanding salary arrears to its workers

𝐏𝐚𝐫𝐥𝐢a𝐦𝐞𝐧𝐭 𝐁𝐮𝐢𝐥𝐝𝐢𝐧𝐠𝐬 
𝐖𝐞𝐝𝐧𝐞𝐬𝐝𝐚𝐲, 𝐅𝐞𝐛𝐫𝐮𝐚𝐫𝐲 𝟐𝟔, 𝟐𝟎𝟐𝟓.

Kisumu County Senator (Prof.) Tom Ojienda, SC is seeking a Statement from the Standing Committee on Agriculture, Livestock and Fisheries regarding the stalled revival of Miwani Sugar Company and the long-standing issue of workers unpaid salary arrears.

Senator Ojienda stated that Miwani Sugar Company, one of Kenya's earliest sugar mills established in 1922, was placed under receivership in February 2001, leading to 530 workers being sent on unpaid leave.

"What was initially intended as a temporary 90-day leave has now extended to over 26 years, leaving former employees in financial distress and farmers struggling due to the collapse of the sugarcane supply chain. Despite multiple plans to revive it, protracted legal battles over land ownership, government inaction, and lack of investment have stalled any meaningful progress." He added.

In the Statement, the Committee should state the total salary arrears owed to former employees of Miwani Sugar Company and indicate a timeline for the payment of the said arrears, assess the socio-economic impact of the prolonged salary delays on the affected workers, their families and the Miwani community, and outline specific remedial measures being implemented to mitigate these effects.

The lawmaker has also requested the Committee to provide an update on the status of legal disputes over land belonging to Miwani Sugar Company and explain any steps the government is taking to resolve these cases to facilitate revival efforts; disclose whether the government has engaged any strategic investors or partners to support the revival of Miwani Sugar and outline the proposed timelines for implementation; and detail the policy reforms being considered in the short, medium and long term to prevent future mismanagement and ensure the sustainability of the sugar sector in Kenya.

Senator Ojienda is further seeking a statement from the Standing Committee on Labour and Social Welfare-regarding concerns over alleged unfair labour practices, ethnic profiling, and violations of labat China Square, Kisumu.

In the Statement, the Committee has been tasked to provide information on the number of employee complaints received by the Ministry of Labour and Social Protection from China Square, Kisumu, since its establishment and how they have been addressed.

The committee should also confirm whether the Ministry has investigated the alleged labour rights violations at China Square, Kisumu, and provide details of their findings and highlight any steps taken to ensure that China Square adheres to the Employment Act, 2007, particularly regarding fair treatment, lawful termination, non-discrimination, and promotion of employees.

Finally, the Senator has asked the committee to explain the mechanisms in place to protect affected employees from retaliation and ensure that their grievances are fairly resolved; and state the measures the Government is taking to prevent similar labour rights violations by foreign-owned businesses in operating in Kenya.