The government has reiterated its commitment to protecting local sugar farmers as the Kenya Sugar Board prepares for crucial elections scheduled for September 5, 2026.
This comes as Cabinet Secretary for Agriculture and Livestock Development Mutahi Kagwe reassured stakeholders that the nation has sufficient sugar production to meet domestic demand without relying on imports.
During a recent consultative meeting held at KilimO House, CS Kagwe made it clear that Kenya no longer needs to import sugar to satisfy local consumption. He stated that the country has sufficient production capacity and that imports should not be encouraged as they disrupt the local market.
The government's position is part of a broader strategy to position Kenya as a sugar exporter in the near future, a move that would significantly benefit local farmers and boost the economy.
The push to support local production has already yielded impressive results. Sugar imports have dropped dramatically from approximately 210,000 metric tonnes last year to just 60,000 metric tonnes this year.
CS Kagwe attributed this decline partly to the introduction of a Ksh.40 per kilogram excise duty under the Finance Act of 2026, which has made imported sugar less attractive to millers and consumers alike. This measure has effectively discouraged imports while creating a more level playing field for local producers.
To further strengthen the industry and prevent unethical practices, CS Kagwe announced stricter licensing requirements for new sugar factories. Investors seeking milling licenses must now demonstrate that they have adequate nucleus estates and contracted outgrowers before approval can be granted.
As he explained during the meeting, the government needs to know exactly where the nucleus farm is located and who the outgrowers are before issuing any licenses. This approach aims to address the persistent problem of cane poaching, which has been a thorn in the side of established sugar farmers.
The government has also moved to address a long-standing grievance among farmers regarding historical arrears. CS Kagwe assured farmers that the administration is committed to clearing the remaining outstanding payments owed to sugarcane growers.
With Ksh.265 million still outstanding in arrears, the Cabinet Secretary indicated that he has engaged National Treasury CS John Mbadi to facilitate these overdue payments. He expressed optimism that settling these debts would mark a significant milestone for the industry.
However, farmers remain concerned about delayed payments in some regions. In Busia and Nzoia, farmers have raised serious concerns about extended payment periods that have negatively affected their livelihoods.
These payment delays have created hardship for farming families who depend on regular income from selling their cane to sugar factories. The community has called for urgent intervention to address this issue.
Beyond payment matters, the farming community has pressed for the full implementation of the Sugar Development Levy. Specifically, they have demanded the release of the infrastructure component of the levy, which is intended to improve sugar industry roads and support development initiatives.
Farmers have also called for increased funding for cane development programmes and the operationalisation of allocations meant for farmer advocacy organisations.
The upcoming Kenya Sugar Board elections are significant as they will determine the direction of the industry for years to come. Five grower directors need to be elected to make the board fully operational and functional.
The Kenya National Federation of Sugarcane Farmers has been vocal about its preferences for the election process. The farmers' federation has made it clear that they want elected directors rather than nominated ones.
Federation Secretary General Kilion Osur stated that if the government believes nominations are the best approach, then Members of Parliament should also be nominated rather than elected, highlighting the farmers' commitment to democratic processes within the industry.
There have also been accusations that individuals with interests outside the farming community have been sponsoring court cases aimed at frustrating reforms in the sugar industry. These legal actions have raised concerns among stakeholders who believe some external actors may be trying to obstruct progress in the sector.
The August 29 import ban announcement by Agriculture Principal Secretary Kiprono Rono was a watershed moment for the sugar industry. The ban was designed to protect local sugarcane farmers and reduce Kenya's reliance on imported sugar. CS Kagwe's reaffirmation of this ban demonstrates the government's unwavering commitment to the policy, even as the industry gears up for its important governance elections.
As Kenya moves towards the September elections, all eyes will be on how the board is constituted and what direction it will take in supporting local farmers and strengthening the industry. With clear government backing and farmer support, the sugar sector appears poised for significant transformation and growth in the coming years.
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