Government Allocates Sh229 Million to Former Pan Paper Workers, Paving Way for Economic Revival

Nairobi: The national government has disbursed Sh229 million to former employees of the Pan Paper factory, marking a significant step towards restoring stability to families previously reliant on the facility. This financial intervention targets 1,349 families of former Webuye Pan Paper workers and aims to rejuvenate the local economy.

According to Kenya News Agency, the funds will be transferred to the beneficiaries' accounts starting Monday next week. The Rai Business Group, the current operator of the company, has committed to integrating the kin of these workers into their workforce as part of a new agreement. Industry Principal Secretary Dr. Juma Mukhwana highlighted ongoing negotiations with potential investors, focusing on re-establishing Webuye as a key industrial center.

Dr. Mukhwana stated, "We have managed to secure Sh229 million to benefit 1,349 families. These are terminal dues that the government stepped in to offset. We are done with all the paperwork, and the money will be wired into your accounts from Monday." He explained that these payments represent terminal dues following dismissals, serving as payment in lieu of notice.

"This is just the beginning of a broader revival plan," added Dr. Mukhwana, referring to strategic discussions aimed at revitalizing Western Kenya's industrial sector. National Assembly Speaker Moses Wetang'ula, present at the event, praised this development as a closure to a challenging phase and an opening for new opportunities within the community.

Wetang'ula announced plans for a 45 MW power station at Nabuyole Waterfall in Bungoma County to support factories and manufacturing efforts throughout the Western region, including the revived Rai Paper Mills. The leaders present commended the government for lifting the moratorium on harvesting mature trees in public forests, urging the Rai group to employ local residents and modernize the facility.

In a coordinated effort to restore Webuye's economic vitality, the leaders emphasized a collaborative approach to reviving industries and enhancing livelihoods across the county. Industry's Secretary to Administration, Karanja Njora, noted, "Appreciating the fact that this exercise has taken a long period and that some of the beneficiaries have since passed on, a joint committee comprising of the State Department's officials and the former employees resolved that the payments be made to the next of kin."