Kenyan sugarcane producers suffer significant losses amid industry challenges

Sugarcane producers in Kenya incurred losses of 46 bln Kenyan shillings between 2014 and 2024 amid persistent problems in the country’s sugar industry. The situation has particularly affected western regions, where sugar mills have traditionally been an important source of employment and income.

Production is being constrained by droughts, floods and pests, which reduce yields and the sugar content of cane. High costs of planting material, fertilizers, fuel, transportation and labor are adding further pressure.

The processing sector also remains under pressure. Many state-owned sugar mills operate with outdated equipment, resulting in higher production costs and lower processing efficiency. Delays in harvesting and transporting sugarcane further reduce producers’ incomes, while late payments from mills force farmers to accumulate debt.

According to the Kenyan Senate Committee on Agriculture, the country’s sugar sector contracted by 27.2% last year. State-owned sugar companies also owe workers 8.98 bln shillings in salaries, pensions and other payments.

Kenya adopted a new Sugar Act in 2024, introducing changes to pricing, payment deadlines for producers and import regulation. However, the industry continues to face high costs, competition from cheaper imported sugar and challenges in implementing the reforms.

Tags: sugarcane, sugar, Kenya