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Company Transition Sparks Crisis at Chemelil Sugar Academy as Learning Disrupted, Staff Declared Redundant and Salaries Remain Unpaid

Reports have emerged that Chemelil Sugar Academy, a top-performing mixed boarding high school in Muhoroni, Kisumu County, has plunged into a severe operational and governance crisis following the winding down of Chemelil Sugar Company Ltd in October 2025, a state-owned sugar mill that had for years struggled with chronic financial losses, obsolete equipment, low cane crushing capacity, and unpaid salaries, prompting a government-directed transition through leasing to private operator Kibos Sugar and Allied Industries Limited (KSAIL) to stabilize operations and revive production.

The transition of Chemelil Sugar Company Ltd to private management has triggered a governance and operational crisis at Chemelil Sugar Academy, leaving teaching and non-teaching staff declared redundant, KCSE examinations disrupted, and salaries and allowances unpaid, fueling uncertainty and unrest among parents, learners, and employees.
The transition of Chemelil Sugar Company Ltd to private management has triggered a governance and operational crisis at Chemelil Sugar Academy, leaving teaching and non-teaching staff declared redundant, KCSE examinations disrupted, and salaries and allowances unpaid, fueling uncertainty and unrest among parents, learners, and employees.

This transition culminated in the creation of Chemelil Sugar Company 2025 Ltd (CSC2025), which assumed management of the mill under a new structure designed to modernize the facility, boost efficiency, resume milling after years of underperformance, and retain a majority of staff under fresh contracts, a process that unfolded amid phased machine rehabilitation, worker engagement, legal disputes, and community protests while the Academy’s teaching and non-teaching staff were caught in the upheaval, declared redundant, and left with unpaid salaries in the middle of the KCSE examination period.

The abrupt dismissal of Academy staff on 1st November 2025 came even after assurances from CSC2025 that the transition would be smooth, with continuity of teaching preserved and remuneration honoured, leaving learners and teachers alike in uncertainty and disrupting examinations at a critical stage, while the mounting arrears in salaries and allowances compounded the sense of instability and deepened anxiety across the school community.

Subsequent attempts by CSC2025 to re-engage staff under new terms have been met with resistance, as the interviews and proposed contracts stipulated shorter tenures, reduced salaries, removal of allowances, and outsourcing of non-teaching staff through third-party agencies with pay cuts reportedly reaching 50% and in some cases staff have not received any remuneration or formal contract, generating widespread low morale, uncertainty, and a breakdown of trust in the institution’s management.

The ongoing disruption at the Academy has left parents scrambling for alternatives, with many keeping learners at home while a special general meeting is convened to determine the immediate future of the institution.

Staff members have expressed frustration over the lack of meaningful consultation during the transition, describing the process as chaotic and poorly coordinated, with decisions affecting salaries, contracts, and staffing made without clear communication or explanation.

The situation has fuelled uncertainty and tension among both teaching and non-teaching personnel, who are left to navigate abrupt changes while ensuring that academic schedules and examinations continue under increasingly difficult circumstances.

“Hello Cyprian. Chemelil Sugar Academy is facing a serious operational and governance crisis following the winding down of Chemelil Sugar Company (1965) Ltd on 31st October 2025 and the transition to Chemelil Sugar Company 2025 Ltd (CSC2025). As a result of this transition, all teaching and non-teaching staff at the academy were declared redundant in the middle of the KCSE examination period, severely disrupting learning and examinations. Despite earlier engagements and assurances by CSC2025 to ensure a smooth transition, staff were sent home on 1st November 2025, unpaid salaries and allowances accumulated, and continuity of learning was jeopardized. Subsequently, CSC2025 subjected staff to interviews and re-engagement under unfavorable terms, including shorter contracts, salary reductions, removal of allowances, and outsourcing of non-teaching staff through a third-party agency with pay cuts of up to 50%. Some staff have not been paid at all, while others were not offered any contracts. These actions were taken without meaningful consultation with the Parents’ Association and have created uncertainty, low morale among staff, and instability in the school’s management. Parents have now been compelled to keep learners at home and convene a special general meeting to decide on the future of the academy. The school was to reopen on Monday.”

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