The government on Saturday released KSh 230 million to former employees of Pan Paper Mills, marking a major step in settling long-standing arrears owed to hundreds of workers affected by the collapse of the once-iconic factory.

The issuance took place at the company’s grounds in Webuye, where senior national and county leaders, including National Assembly Speaker Rt. Hon. (Dr.) Moses Wetang’ula and Bungoma Governor Kenneth Lusaka, praised the payout as a fresh chapter in the revival of the region’s industrial economy.

Speaker Wetang’ula said the payment signalled relief for families whose livelihoods had been disrupted for years following the collapse of Pan Paper after decades of financial turbulence.

“Today is a good day for the former employees of Pan Paper Kenya Limited because they have finally been paid their arrears,” he said.

“Since its inception in 1973, Pan Paper transformed the lives of many people across the country and spurred the growth of Webuye town.”

He, however, cautioned the former workers not to let the payout disrupt their families, urging them instead to use the money responsibly by prioritizing pressing needs such as school fees and development projects in their households.

Wetang’ula expressed regret over the factory’s financial troubles that ultimately led to its shutdown, stripping thousands of families of stable income.

He credited investor Narendra Raval, popularly known as Rai, for stepping in to revive the struggling plant and injecting new energy into Bungoma’s industrial prospects.

“I thank Rai for reviving this company because he is the number one investor in Bungoma County. He has invested heavily, and now the government has entrusted him with Nzoia Sugar Company,” Wetang’ula said.

He added that the lifting of a longstanding ban on logging was expected to accelerate the factory’s return to full operations.

“Soon, you will see Rai Paper back on its feet,” he assured workers.

Bungoma Governor Kenneth Lusaka also lauded the disbursement, calling it a moment of pride for a county that has long waited for accountability and closure.

“I am proud to witness this happening and to see our workers finally being paid,” Lusaka said.

He urged beneficiaries to prudently manage the funds.

“Let’s use the money responsibly; let’s not misuse it. We thank President William Ruto for enabling this and alleviating the suffering of former Pan Paper workers.”

Investor Rai welcomed the payouts and said the company would continue integrating former employees into its revived operations.

“I am happy that the old workers have finally received their rightful dues, though it has taken long,” he said.

“Among the ex-employees, I will take one family member from each family. One employee from each household will get an opportunity.”

Rai added that farmer payments at Nzoia Sugar, now under his management, are made “promptly each week without fail,” he observed.

Rai said his commitment to restoring stability across Kenya’s agro-industrial value chains.

On his part, Trade and Industry Principal Secretary Dr. Juma MUKHWANA said revival of Pan Paper remains one of the most closely watched industrial rehabilitation efforts in Kenya.

“For Webuye residents and the families of former employees, the KSh 230 million though it has been long overdue, the payout represents long-awaited justice, it rekindles hope that the town’s industrial heartbeat is finally returning” said Dr. MUKHWANA.

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