Sugar sector not in crisis, Kenya Sugar Board assures

Kenya Sugar Board (KSB) Chief Executive Officer Jude Chesire [Courtesy]

Kenya's sugar sector is undergoing temporary challenges but  remains stable as part of a long-term reform process aimed at sustainable growth, the government has said, dismissing fears of a looming crisis after recent projections of price increases.

Production fell 25 per cent to 613,000 metric tonnes in 2025 from a record 815,000 metric tonnes in 2024, meeting about 61 per cent of the national demand of 1.2 million metric tonnes, according to Kenya Sugar Board (KSB) Chief Executive Officer Jude Chesire.

The decline was anticipated and resulted from a combination of weather stress, protection of immature cane and structural reforms designed to secure the industry's long-term survival, Chesire said.

"The government and industry regulators have put in place market stabilisation measures to ensure sugar remains available, prices remain predictable and consumers are protected from artificial shortages and speculation," Chesire said.

Much of the mature cane was harvested in 2024, contributing to that year's record production.

 Last year, a significant portion of cane was still at developmental stages and could not be harvested without compromising future yields.

Seven sugar factories in Lower and Upper Western regions were temporarily closed to allow cane to reach optimal maturity, ensuring higher sucrose content and better returns for farmers, Chesire explained.

At the same time, four state-owned sugar factories were shut to facilitate leasing to private investors.

Following handover, the factories underwent extensive rehabilitation and modernisation worth about Sh12.5 billion, leading to roughly nine months of reduced milling capacity. Kwale Sugar also remained non-operational during 2025.

Dry conditions that set in during late 2025 and persisted into early 2026 further compounded production challenges, slowing cane development and reducing tonnage per hectare in key growing zones.

Farmers remain at the centre of the sector's rebound strategy. Cane maturity timelines are now being strictly respected, while Sugar Development Levy-funded programmes worth Sh1.2 billion are set to accelerate cane development in 2026.

These include expansion of cultivation areas and the introduction of early-maturing cane varieties developed by the Sugar Research Institute.

Harvesting and milling is projected to resume strongly from October to November this year, which will improve payment reliability, boost yields and drive a sustained increase in domestic production, Chesire revealed.

"Kenya's sugar sector is being rebuilt to match the country's growing population and rising demand, not just for today but for the next generation," Chesire noted.

The assurance comes as Kenya recently exited the Common Market for Eastern and Southern Africa (COMESA) sugar safeguard after 24 years, marking a transition from protection to competitiveness.

Under the new policy, there is no limit on duty-free sugar imports from COMESA countries.

"The assurance to Kenyans is clear: sugar supply will remain stable as the industry completes its recovery," Chesire said.

Chesire was unanimously elected chairman of the International Sugar Organization (ISO) Council for 2026 in November 2025, becoming the first Kenyan and first African to hold the position.