The government has entered into an agreement with sugarcane farmers and sugar factory workers' unions to pay cane delivery and salary arrears owed to both groups.
The agreement is aimed at securing the future of cane farmers and sugar factory workers as the government leases out four sugar factories, namely Nzoia, Chemilil, Sony, and Muhoroni, to private millers.
In a statement sent to media houses, the Cabinet Secretary for Agriculture and Livestock, Mutahi Kagwe said that under the agreement, the government will settle arrears owed to both farmers and workers before the handover of the four factories.
The CS said that according to the agreement, the government will pay farmers Sh500 million in July this year for cane deliveries to clear arrears owed. "Last year, the government paid out over Sh1.7 billion to sugarcane farmers to clear arrears owed by sugar factories.
