Treasury to allocate Sh2 billion to clear Nzoia workers debts, says Wetang'ula

The revival of Nzoia Sugar Company is breathing new life into Bungoma County’s economy and restoring farmers’ confidence after years of uncertainty.

According to the National Assembly Speaker Moses Wetang’ula, the reforms under the Kenya Kwanza administration were already reversing years of decline in the sugar sector.

Speaking during Sunday Mass at Our Lady of Fatima Catholic Church in Kongoli, Bukembe East Ward, Kanduyi Constituency, Wetang’ula revealed he had engaged Treasury Cabinet Secretary John Mbadi to secure funding in the forthcoming national budget to clear long-standing workers’ arrears.

“Nzoia Sugar will not collapse. The measures being implemented are meant to safeguard farmers’ livelihoods and return the factory to profitability. Sh2 billion will be allocated to pay Nzoia workers' debts," Wetang'ula noted.

He said the government was expected to allocate Sh2 billion to settle salary backlogs and outstanding debts owed to employees. 

“The workers have endured difficult times. Clearing these arrears will stabilise operations and strengthen productivity,” he said.

 Wetang’ula acknowledged that challenges remain but assured stakeholders that the government was committed to resolving them. 

“I know there are teething issues, but not everything can be solved at once. We are committed to addressing the welfare concerns of both workers and farmers,” he said. Urging residents to embrace sugarcane farming and support the ongoing turnaround.

He questioned why opponents were targeting the private investor managing Nzoia Sugar, yet the same investor had successfully operated similar ventures in neighbouring Trans Nzoia County to the benefit of local farmers. 

“The economy of this area revolves around Nzoia Sugar, and already the nucleus is coming back to life,” he said.

 Wetang’ula disclosed that the factory was nearing completion of an extensive maintenance and modernisation programme following its acquisition by a private investor in the Western Kenya sugar belt.

The rehabilitation has included upgrading milling equipment, refurbishing the production line, and improving operational efficiency to prepare the plant for consistent production. 

“The factory is almost complete after long maintenance. With the new investor on board, Nzoia is now positioned to operate competitively and sustainably,” he said.

Once fully operational, the revamped facility is expected to increase cane intake, reduce frequent breakdowns, and stabilise production developments likely to benefit thousands of farmers who depend on sugarcane as their primary source of income.

The Speaker noted that early results of the privatisation and restructuring process were already evident, particularly in improved payment systems for farmers.

For years, delayed payments had crippled cane production and strained household incomes across Bungoma and neighboring counties.

Under the new management framework, however, growers are now receiving prompt and more reliable compensation. 

“Timely payments are restoring dignity to farmers and enabling them to reinvest in agriculture,” Wetang’ula said, encouraging residents to expand acreage under cane cultivation.

The Speaker was accompanied by Kanduyi MP John Makali, area MCA Caleb Wanjala, and nominated MCA Everlyn Anyango, who echoed his sentiment that government-backed reforms are beginning to turn around the troubled miller.

The leaders emphasised that the sugar industry remains the backbone of Kanduyi’s economy, providing employment and driving rural development.

“This revival is not just about a factory. It is about restoring livelihoods and securing the future of our people,” Makali said.

Wetang’ula reaffirmed that the government remained committed to revitalising public sugar mills and empowering farmers across Western Kenya.

“The sugar industry is rising again. This is about transforming communities and building a sustainable agricultural future,” he said.

President William Ruto is expected to tour the Nzoia Sugar factory later this year to assess progress on the ongoing reforms.

This comes even after farmers and workers staged a protest for the second time on Monday, demanding that leaders come and address their plight.

Led by Griffin Wasike, Kenya Union of Sugar Plantation and Allied Workers chairman, they demanded to be paid their wages in full and asked the government to honour its promise of paying the arrears.

"We want the leaders to organise a meeting and address our plight. The problem is not the private investor who took over Nzoia Sugar: we want to know how much Nzoia Sugar was leased and where the money goes. The debts should be cleared immediately. We demand full payment of Sh10.8 billion and not Sh2 billion as the speaker is stating. We respect the speaker, but we want him to tell the treasury and the president to clear our debt," he noted.