Chemelil staff pay fears as miller set to be privatised

Tractors deliver cane at a sugar factory in western Kenya. file photo | nmg

What you need to know:

  • Chemelil Sugar Company workers want other avenues explored other than privatisation.

Chemelil Sugar Company employees have expressed fear of losing Sh315 million owed to them in seven-month salary arrears.

As the government embarks on plans to sell five state-owned sugar companies, the workers called on the Privatisation Commission to evaluate the financial capability of the strategic investors and ensure that the workers and farmers are not adversely affected.

In a memorandum signed by the miller’s acting managing director Gabriel Nyangweso, Chemelil employees raised concerns whether the investor will continue to mill sugar and support sugarcane farming.

“Other than the salary arrears, the workers are owed allowances, pension and sacco remittals. What is the assurance that these liabilities will be taken up by the new investor?” they said in a statement.

Despite numerous assurances from the government, the managing director indicated that workers are yet to be paid their monthly dues for April to September last year.

The workers also asked the government to explore other solutions, instead of privatisation, that can help the company to overcome its challenges.

“If privatisation is the only identified solution, to what extent will it solve the problems of the company and bring it back to profitability?” the Chemelil boss questioned.

Mr Nyangweso said should the sale be successful and some employees opt to leave the company, they should be given room to negotiate terms of their retirement packages.

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