KISUMU, Kenya, Sep 30 – Sugar sector workers have threatened to down their tools from Thursday, October 1, over Sh2.7 billion in unpaid salary arrears and terminal benefits owed to employees who were not absorbed following the restructuring of State-owned sugar companies.The Kenya Sugarcane Plantation Workers Union has given the government until Wednesday, to release the funds, warning that failure to do so will trigger industrial action that could disrupt sugar production.Union Secretary General Francis Wangara said the government had failed to honour its commitment to settle the outstanding payments despite the funds having been allocated in the national budget.Wangara said the union had written to the Ministry of Agriculture twice seeking clarification on when the payments would be made but had yet to receive a firm commitment.“We demand that this payment must be made immediately, failure to which it will cause confrontation, which will be very unfortunate for all of them,” Wangara said.He explained that the payments were expected to begin in July, following the start of the 2026/2027 financial year, but the government had continued to delay their release.According to Wangara, the union had initially reached an agreement with the sugar sector transition committee that the outstanding payments would be settled by August or, at the latest, September.However, the failure to release the funds has left affected workers struggling financially, with some unable to meet basic household expenses, including school fees and food.The union said the affected workers had been relying on the promised payments to stabilise their finances following the restructuring of the sugar industry.Wangara warned that the government would be responsible for any losses arising from the planned industrial action, arguing that workers should not bear the consequences of delays in settling their dues.“If there is any time when they will lose as a result of this stoppage of work, then the government must know how to compensate them. Because the button is the government and the delay is caused by government,” he said.Sugar Production Faces DisruptionThe union has also appealed to sugar millers to support its demand for the immediate release of the funds and prepare for possible disruptions should workers proceed with the strike.Wangara said the union had cautioned employers against taking action that would unfairly penalise workers if industrial action forced mills to suspend operations.He noted that the threatened strike comes at a critical period for the sugar industry, which is currently experiencing peak production.“The reason why we are asking that we should join forces so that payment is done early, so that it does not affect the sugar production,” Wangara said.He warned that even a one- or two-day work stoppage could result in substantial losses for sugar millers, with production disruptions potentially affecting operations during the peak season.The union is urging the government and millers to resolve the dispute before Thursday to avert an industrial crisis that could affect sugar production.Ruto Copied in Union’s Protest LetterWangara said the union had escalated the matter by copying its correspondence to senior government officials, including President William Ruto, the Cabinet Secretary for the National Treasury and Economic Planning, and other relevant authorities.He maintained that the union was not seeking political intervention but wanted the government to honour its commitments to workers affected by the restructuring of the sugar companies.“We believe that the government has the authority and the mandate to pay this money,” he said.The union has instructed its members to join the national leadership in demanding the immediate release of the funds, warning that workers could begin withdrawing their labour at any time from Thursday if the government fails to communicate its position.Wangara said some workers had already expressed their readiness to participate in the strike, although others remained cautious.The dispute centres on outstanding salary arrears and terminal benefits owed to workers who were not retained following the transition of the former sugar companies into restructured entities.The union says it will continue pressing for the settlement of the Sh2.7 billion obligation until all affected workers receive their dues.