Hundreds of workers from the Nzoia Sugar company risk job losses after the company issued redundancy notices effective November 1.
In an internal memo seen by Kenyans.co.ke dated August 18, and signed by the company’s managing director, Hezron Kotu, the company revealed that the move follows the government’s move to lease the company to private owners.
“Following the recent government's decision to lease all the state-owned sugar mills to private investors, hereby wish to formally notify you of the Company's intention to declare Nzoia Sugar Company Limited's existing job positions redundant, effective 1 November 2025,” the statement read in part.
In the notice, the company revealed that it would follow all relevant processes to ensure every employee is settled according to the Collective Bargaining Agreement (CBA).
“The Company intends to follow due process provided in applicable labor laws regarding employment separation on account of redundancy, the current CBA & guidelines provided by the Ministry of Agriculture and Livestock Development,” the statement continued.
Kotut went further to explain that the main reason for the notice was to ensure all employees at the point of separation have all current regular staff paid their dues and entitlements in accordance with the applicable laws, the CBA & other relevant guidelines.
The company concluded the notice by thanking the employees for their years of service and dedicated support.
Nzoia is among the four state-owned companies that were leased to private owners. The Ministry of Agriculture had directed the companies to issue redundancy notices in line with the leasing.
The firms were instructed to formally notify all affected employees of their termination in compliance with Section 40 of the Employment Act, 2007, and respective CBAs.
The notices, according to the directive, must clearly state the reason for termination, outline each worker’s redundancy entitlements under the law and the applicable CBA, and be copied to the respective County Labour Officer.
Management was instructed to assure employees that all dues and lawful entitlements will be fully paid in accordance with statutory provisions.
Apart from Nzoia Sugar, Sony Sugar also issued a redundancy notice to their employees. For Sony Sugar, their services will terminate by October 31.
In May, the government officiated the leasing of the sugar companies to revive the struggling sugar sector.
Nzoia Sugar Company was leased to West Kenya Sugar Company, Chemelil Sugar Company to Kibos Sugar & Allied Industries Limited, Sony Sugar Company to Busia Sugar Industry Ltd, Muhoroni Sugar Company to West Valley Sugar Company, and Miwani Sugar Company to Pandhal Industries.
