The Government has reaffirmed its ban on sugar imports and frozen the issuance of new sugar import licences, signaling a renewed commitment to protecting local sugar farmers and strengthening the country’s sugar industry ahead of the Kenya Sugar Board elections scheduled for September 5, 2026.
Agriculture and Livestock Development Cabinet Secretary Sen. Mutahi Kagwe made the announcement during a consultative meeting with sugar farmers, industry stakeholders and officials from the Kenya Sugar Board, where he outlined a series of reforms aimed at fully operationalising the Board under the Sugar Act, 2024.
Kagwe directed that no new sugar import licences should be issued, arguing that local sugar production has improved significantly and is now capable of meeting the country’s domestic demand.
“We have frozen the issuance of new sugar import licences because local production is now sufficient to satisfy domestic demand. Our focus is to protect Kenyan farmers and position the country as a sugar-exporting nation,” the CS said.
The move comes as the Government seeks to consolidate gains made in revitalising the sugar sector, which has historically struggled with low productivity, cheap imports, delayed farmer payments and ageing milling infrastructure.
According to Kagwe, sugar imports have fallen by more than 71 percent, declining from approximately 210,000 metric tonnes last year to about 60,000 metric tonnes this year. He attributed the sharp reduction partly to the KSh40 per kilogram excise duty introduced under the Finance Act, 2026, which has made imported sugar less competitive while encouraging greater reliance on locally produced sugar.
The Cabinet Secretary said the Government’s long-term objective is to transform Kenya from a net sugar importer into a competitive sugar-exporting country by supporting local production and strengthening industry regulation.
In another major policy shift, Kagwe announced tighter licensing conditions for investors seeking to establish new sugar factories. The stricter requirements are intended to address the long-standing challenge of cane poaching, which has disrupted operations across many milling companies.
Under the new guidelines, prospective millers will be required to demonstrate that they have sufficient nucleus estates and contracted outgrower farmers before receiving operational licences.
“We must stop unhealthy competition for cane. Any investor seeking to establish a new factory must demonstrate adequate cane development through nucleus estates and contracted outgrowers before a licence is granted,” Kagwe said.
The Cabinet Secretary also addressed concerns over delayed farmer payments, noting that the Government has significantly reduced historical arrears owed to sugar farmers.
He revealed that outstanding payments have been reduced from nearly KSh2 billion to about KSh265 million, adding that consultations with the National Treasury are ongoing to clear the remaining balance.
Kagwe further instructed millers to move swiftly in settling delayed payments to growers, saying prompt payment is essential to sustaining farmer confidence and increasing cane production.
The consultative meeting also focused on preparations for the Kenya Sugar Board elections, which stakeholders described as a critical step towards fully operationalising the Board established under the Sugar Act, 2024.
The elections, set for September 5, 2026, will see sugar farmers elect five grower directors representing the country’s five sugar-growing regions. Farmer organisations welcomed the announcement, saying elected grower representatives will strengthen accountability and ensure farmers have a direct voice in policy and decision-making within the industry.
Industry stakeholders also used the meeting to press the Government to release the infrastructure component of the Sugar Development Levy, arguing that the funds are critical for improving roads used to transport sugarcane and enhancing overall efficiency within the sector.
They further appealed for the write-off of more than KSh48 billion owed by former outgrower institutions, saying the debt continues to weigh heavily on farmers and cooperative societies.
On cane pricing, growers expressed support for maintaining the current cane price of KSh5,500 per tonne, while acknowledging that the previous rate stood at KSh5,750 per tonne. They urged the Government to ensure pricing remains predictable to enable farmers to plan production and sustain investments in cane farming.
Kagwe reiterated that the Government remains committed to implementing reforms that promote transparency, accountability and sustainability across the sugar value chain.
He also announced that a substantive Chief Executive Officer for the Kenya Sugar Research and Training Institute (KESRETI) will be appointed before the end of the week, describing the appointment as an important step towards strengthening research, innovation and technology transfer within the sugar industry.
The latest reforms form part of the Government’s broader strategy to revive Kenya’s sugar sector by improving farmer earnings, increasing local production, enhancing governance and reducing dependence on imported sugar while creating a more competitive and profitable industry for growers and millers alike.
Author: Moureen Koech
Moureen Koech is a passionate Digital Journalist, an adept Agribusiness Writer with a keen eye for news and an impactful story-teller,whose stories provide key value to Agripreneurs and stakeholders in the Agricultural sector
