By Edris Omondi Esq. Executive Director Crime Prevention Initiative Trust. cpitkenya@gmail.com
The recent issuance in a memo directing the sugar companies’ management to issue termination notices to the staffs of both Muhoroni Sugar Company and South Nyanza Sugar Company declaring them redundant was both ill-advised and untimely. PS Agriculture Dr. Paul Kipronoh Ronoh should be prevailed on, to revoke the same. This came at a time when the industry is already fragile and still locked in a slow-moving privatization process, this decision risks pushing thousands of breadwinners into poverty while further undermining an already weakened sector.
Kisumu Governor, Prof. Anyang’ Nyong’o, has rightfully warned that redundancy at this stage is the wrong step. I echo his sentiments. It is not only an economic misstep but a social injustice to families whose livelihoods have for decades been tied to the sugar industry.
Lessons from the Past:
In 2005, I participated in a study commissioned by ActionAid International and the UNFAO, under the leadership of Professor Qasim Shah, to examine the impact of sugar surges on rural livelihoods and food security. The findings remain relevant today.
Between 1995 and 2004, Kenya’s sugar imports surged sharply following trade liberalization and the removal of price controls. Imports grew from 65,000 tonnes in 1996 to nearly 250,000 tonnes by 2001. The result was devastating: direct employment in the sugar sector shrunk by 79%, with more than 32,000 people losing jobs. Close to 160,000 households across sugar-producing regions saw their incomes plummet, while the share of imported sugar in the domestic market ballooned from 31% to 41%.
This historical evidence shows us one thing: sugar sector mismanagement always translates directly into social crisis. Declaring redundancy now only repeats the same mistakes of the past, with even harsher consequences.
Why Redundancy is Ill-Advised:
Mass redundancy in sugar companies will not solve the sector’s underlying inefficiencies. Instead, it will:
- Erode livelihoods: Thousands of families in Nyanza depend on sugar factories, either directly or indirectly.
- Weaken rural economies: Reduced household incomes shrink local markets and increase poverty.
- Compromise food security: Heavy reliance on imported sugar makes Kenya vulnerable to global price shocks and cartels.
- Fuel social instability: Joblessness and frustration breed crime, rural-urban migration, and the breakdown of community structures.
What Other Countries Did Differently:
Kenya is not the first country to face a sugar industry crisis. Yet others have chosen reform over retrenchment:
- Mauritius transformed its sugar industry by diversifying into ethanol, co-generated electricity, and specialty sugars. Workers were retrained and absorbed, not discarded.
- India gave farmers and workers cooperative ownership stakes in sugar mills, ensuring reforms were people-driven.
- Brazil pivoted from sugar to bio-ethanol production, creating new industries while sustaining employment.
The lesson? Redundancy is not reform. Strategic restructuring, diversification, and re-skilling are the sustainable pathways.
The Right Path for Kenya:
Kenya can still reinvent its sugar industry without sacrificing livelihoods. The Government should pursue:
- In the first instance work with the County Governments- since Agriculture is devolved and hence restructure joint committees that understudy the livelihood action impact.
- Restructuring Before Redundancy- Fix governance, modernize equipment, and improve efficiency before privatization, not after.
- Worker-to-Shareholder Transition – Convert workers into shareholders of privatized companies, as seen in cooperative models abroad.
- Product Diversification – Expand beyond sugar to ethanol, industrial alcohol, animal feed, and renewable energy (bagasse cogeneration).
- Re-skilling Programs – Prepare workers for roles in diversified industries rather than sending them home empty-handed.
- Gradual Retirement Options – Introduce voluntary exit packages and phased retirement instead of abrupt retrenchment.
Conclusion
Kenya’s sugar sector is not just about cane and factories; it is about families, food security, and the future of rural economies. Redundancy is a blunt instrument that punishes workers for failures not of their making.
As Kenya dives into the merit of privatization of the industry, let it be a people-centered privatization that secures livelihoods while building competitiveness. Other countries turned their sugar crises into opportunities. Kenya must not let its sugar belt collapse into despair.
The sweet future of sugar lies not in discarding workers, but in reinventing the industry around them.
