Mumias Sugar Company Issues Historic Bonus Issuance to Sugarcane Farmers

By Strilus Bellbut 

Kenya’s sugar industry received a major boost on January 20, as Mumias Sugar Company paid out a historic Ksh 150 million in bonuses to sugarcane farmers. 

This marked the first-ever issuance of bonuses in the company’s history, a moment that symbolizes hope for thousands of farmers who have endured years of hardship since the factory’s collapse.

Speaking at the event, President William Ruto praised the farmers for their resilience and commitment, recognizing them as the backbone of the sugar industry’s revival in Western Kenya. 

He pledged to eliminate cartels within the company, which he said had contributed to its collapse, and assured farmers of his administration’s full support in restoring the sector.

“My main objective is to ensure that our jobless youths get jobs through this factory,” the President said, adding that the reopening of Mumias Sugar Company was a crucial step toward creating opportunities for many families in the region.

While the focus of the day was on celebrating the farmers’ hard work and their long-awaited rewards, the event also became a platform for President Ruto to address criticism of the government’s new Social Health Authority (SHA) model. 

Local MP Peter Kalerwa Salasya, who was present, accused the government of misleading citizens about the scheme, claiming it was not working as promised.

“Mr. President, your people are not telling you the truth,” Salasya said. “They claim that SHA is working, but it’s not. Cartels are misleading you, and this is stalling progress.”

President Ruto, however, dismissed the claims, saying that resistance to the SHA stemmed from some politicians’ dissatisfaction with the higher contributions they are now required to pay under the scheme. 

He explained that SHA is designed to help vulnerable Kenyans, with higher earners paying more to cover those who cannot afford healthcare costs.

“The reason why you are hearing some people complaining about SHA is because they are now paying more than they used to pay,” Ruto said, adding that he personally contributes Ksh 100,000 under the new scheme, up from Ksh 1,000 under the previous NHIF model. He revealed that MPs now pay Ksh 27,000, compared to the Ksh 1,700 they were used to.

“Instead of admitting they don’t want to pay more, they are claiming that people have rejected the plan. Where did they meet these people?” he asked, urging Kenyans to register for SHA and assuring them that the government would support those unable to pay.

Prime Cabinet Secretary Musalia Mudavadi also spoke during the event, reflecting on the difficult years that saw Mumias Sugar Company collapse due to corruption and mismanagement. 

He called on the new management and local leaders to ensure transparency and accountability to prevent a repeat of past failures.

“The collapse of Mumias Sugar Company was a result of resource mismanagement and corruption,” Mudavadi said. “Corruption is both expensive and painful, and it has crippled industries, including this one.”

Mudavadi praised the patience and resilience of farmers, noting the sacrifices they had made to survive while waiting for the company to be revived. 

He said the government was committed to creating policies that would empower both farmers and investors, highlighting initiatives such as the subsidized fertilizer program.

“The revival of Mumias Sugar Company will bring money into people’s pockets—farmers, businesses, and investors—and boost the government’s revenue through taxes,” he said. 

“Today marks a historic moment as we roll out the first-ever bonuses for sugarcane farmers. It is not just the beginning of a revival for the sugar industry but for the agricultural sector as a whole.”

Kakamega Governor FCPA Fernandes Barasa echoed these sentiments, describing the revival of Mumias Sugar Company as a turning point for the region. 

He outlined his administration’s commitment to improving infrastructure, healthcare, agriculture, and education, all aimed at ensuring that growth benefits every resident of Kakamega County.

For the farmers gathered at Mumias Sugar Company, the day was a moment of triumph and renewed hope. Many had endured years of uncertainty and financial strain, watching the factory’s collapse take a toll on their livelihoods. As they received their bonuses, the sense of pride and optimism was palpable.

The revival of Mumias Sugar Company is not just about restoring a factory—it is about rebuilding lives, creating opportunities, and rekindling the dreams of thousands of farmers and their families. For Western Kenya, it is a symbol of resilience and the promise of a brighter future.