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Legal Hurdle Against Leasing State-owned Sugar Millers Lifted

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Nyakundi Report

Newsroom 1 min read

This archive report was first published on 20 August 2020.

On August 20, 2020, the Kenya Union of Sugar Plantations and Allied Workers (KUSPAW) withdrew a case it had filed in court opposing plans to lease out five cash-strapped state-owned sugar millers to private investors.

The state-owned sugar millers in question are Chemelil, Muhoroni, Miwani, Sony, and Nzoia Sugar factories.

According to KUSPAW, the millers owed workers salaries running into billions of Shillings and that it had been left out of the leasing process.

However, after signing a memorandum of understanding with Lake Region Economic Bloc (LREB) Governors Wycliffe Oparanya and Prof Anyang Nyong'o, KUSPAW agreed to withdraw the suit against the state.

As part of the agreement, the millers are required to settle all pending salaries before the leasing process kicks in.

The state has already waived KSh 62.5 Billion debts owed by the five sugar mills, setting the stage for their revival with the leasing option being chosen as the most viable alternative.

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