Ex-Mumias workers demand pay from Sarrai Group

Mumias Sugar Company

The entrance to Mumias Sugar Company. 

Photo credit: File | Nation Media Group

Former Mumias Sugar Company workers on Tuesday camped at the sugar miller premises demanding payment of their salary arrears from Uganda-based Sarrai Group.
Led by Mumias Sugar Branch Workers Secretary Vitalis Magoha, the former workers claimed the firm had promised to pay them once the factory starts operating.

“The company has not paid workers yet its managers claim it is producing sugar,” Mr Magoha said. He called on President William Ruto to intervene.

The workers accused Sarrai Group of subjecting them to poor working conditions.      
“I used to work inside the factory as a loader being paid Sh600 per day. Since Sarrai Group came, we were fired and when we went back, the company said it could pay us Sh250 per day.
Mr Musa Chebii, another employee claimed that the workers have no health insurance cover.   
“Some of us who are working in the factory do not have insurance cover. Most of us have been injured in the line of duty and have not been compensated,” Mr Musa Chebii said.

While in Kakamega County last December, President Ruto promised to get a new investor to revive the troubled miller.

"The government will clear all outstanding debts of the miller and bring in a new investor under an agreement that he will be remitting Sh100 million monthly to the County Government of Kakamega to improve on standards of education, health and improve the road network," he said.
Sarrai Group controversially won a 20-year lease tender in December 2021 following a bidding process that saw higher bidders locked out.  

However, in April 2022, High Court judge Justice Alfred Mabeya ordered Sarrai to leave the premises and removed Ponangipali Venkata Ramana Rao as the Administrator of the company.
Justice Mabeya further appointed Kereto Marima as the new administrator of Mumias Sugar Company and ordered Rao to hand over the company to Marima.

“This court has considered the allegations made against the leasing process. Rao awarded the lease to the lowest bidder while there were higher bidders, without giving any justifiable explanation,” the judge ruled.

Justice Mabeya said public interest demands that receivership that has yielded zero results takes a back seat and a professional administration of Mumias is given a chance.