Nzoia Sugar employees protest against leasing of factory to billionaire Jaswant Rai

Transport was on Wednesday paralysed on the busy Webuye- Malaba highway after hundreds of Nzoia Sugar employees protested the intended leasing of the company to a new investor.

The protestors barricaded the road, lit bonfires as they carried placards, chanting anti-government slogans.

They walked five kilometres from the factory to the busy highway, demanding to be paid 28 months' salaries that have accrued to Ksh.2.3 billion.

The workers accused the government of going against labour laws and demanded job security before leasing the factory to the new investor, recently identified as businessman Jaswant Rai.

"Farmers and workers must be paid in full before Rai comes to Nzoia. We will not allow Rai to come to Nzoia without the workers getting their salaries,” said Nzoia Sugar Company workers' chair Benjamin Agunda.

“Don’t bring an investor to Nzoia if our arrears have not been paid. They have broken the labour laws because workers cannot be chased away like dogs; there must be a process. We want our leaders to intervene; we have gone for more than 26 months without payment,” said an employee, Stanley Matakili.

Anti-riot police had a rough time clearing the barricaded road and dispersing the protestors.

This comes a week after President William Ruto's announcement of leasing the four Sugar mills to Rai during his Labour Day address.

The factory’s board chairman, Alfred Khang’at, said that Rai would take over the industry next week after he won the 30-year lease.

He said farmers would receive more than Ksh.200 million in pending payments before the end of this financial year, and workers will remain under the new management for the next year to allow a smooth transition. 

However, the process faces a legal challenge, with a court case already filed.

"In the coming week or the week after, they will no longer belong to the government. Some private enterprises will have taken over. The aspect of privatisation or leasing is for 30 years. A lease agreement has already been signed between the government and the lessee," Bonface Otsiula, Board Member at Nzoia Sugar Factory, stated.

"We are looking at the wider public interest, which involves the welfare of the farmers and staff who have not earned a salary from 2022 to date and they have persevered," Board Chairman Alfred Khang’ati added.