In a significant move aimed at revitalizing the country’s sugar industry, the Kenya Sugar Board has announced an upward revision of sugarcane prices, increasing the rate from Ksh.5,300 to Ksh.5,500 per tonne. The decision, which comes into effect on May 26, 2025, follows the approval of the Cane Pricing Committee, marking a crucial step in ongoing efforts to strengthen the sector and protect sugarcane farmers across the country.
The announcement was made by Agriculture Principal Secretary (PS) Dr. Kipronoh Ronoh, who emphasized the government’s commitment to ensuring fair compensation for farmers and promoting sustainable growth in sugar-producing regions. The revised sugarcane pricing is expected to benefit thousands of cane growers, particularly in counties like Kakamega, Bungoma, Busia, Migori, and Kisumu, where sugarcane farming is a key economic activity.
A Boost for Cane Farmers in Kenya
The increase in sugarcane prices is a welcome development for Kenyan farmers who have long decried low returns despite rising production costs and market volatility. The new minimum cane price of Ksh.5,500 per tonne is part of a broader set of reforms led by the Ministry of Agriculture, aimed at restoring order in the sector and improving livelihoods.
“Based on the prevailing ex-factory sugar prices over the past three months (February to April 2025), the price of cane has been increased… effective 26th May 2025,” stated Dr. Ronoh. “You are hereby requested to adhere to the new minimum cane price while making payments to farmers on time.”
This directive is targeted at all 15 licensed sugar millers operating in the country, including state-owned factories under lease arrangements. It reflects the government’s firm stance on ensuring that all players in the sugar value chain treat farmers equitably.
Enforcing Compliance Across Sugar Millers
To ensure full compliance, the Agriculture Ministry in Kenya has mandated that millers implement the new pricing without delay. Dr. Ronoh has further instructed millers to ensure prompt payment to farmers, noting that delayed or incomplete payments have been a major source of dissatisfaction in the sugarcane-growing community.
“All sugar millers must adhere strictly to the new minimum cane pricing structure,” the PS added. “This is not optional. The welfare of our farmers and the sustainability of the sugar industry depend on a fair and functional pricing model.”
The move comes as part of a wider government campaign to revive the troubled sugar industry, which has faced challenges such as mismanagement, smuggling, corruption, and stiff competition from imported sugar. The sector, once a key employer and contributor to the economy, has seen many local millers operate below capacity or shut down entirely.
Industry Reactions and Farmer Sentiment
Early reactions from the farming community have been largely positive. Cane growers’ associations in western Kenya have lauded the government’s decision, terming it as long overdue. Many farmers say the increased price per tonne will help offset the high cost of inputs like fertilizer, labor, and transportation.
“We appreciate this move by the Kenya Sugar Board and the Ministry of Agriculture,” said John Were, a sugarcane farmer from Bungoma. “It shows that our concerns are being heard. The next step should be enforcement and monitoring to ensure millers actually pay us on time and in full.”
However, some farmers remain cautiously optimistic, citing past instances where directives on cane pricing were not fully implemented. Many are urging the government to not only issue orders but also set up mechanisms to monitor compliance and penalize defaulters.
A Step Towards Reviving Kenya’s Sugar Sector
The sugarcane price revision is part of a broader effort by the Kenyan government to revamp the sugar industry, which plays a critical role in supporting rural livelihoods and contributing to food security. Alongside pricing reforms, the government has pledged to invest in infrastructure, improve access to credit for farmers, and modernize sugar processing facilities.
According to recent data, the sugar industry supports over 250,000 smallholder farmers and sustains more than 6 million Kenyans directly and indirectly. It remains a vital sector in the economy, especially in western Kenya, where agriculture is the primary source of income.
Experts believe that a well-regulated and properly funded sugar industry can not only meet local demand but also export to neighboring countries. However, this can only happen if issues of corruption, mismanagement, and policy inconsistency are addressed.
Looking Ahead: Key Recommendations
As the government implements these pricing reforms, stakeholders are urging further action to ensure the sector’s long-term sustainability. Some key recommendations include:
- Strengthening regulatory oversight through the Kenya Sugar Directorate to ensure compliance and accountability.
- Investing in farmer training and extension services to improve yield and reduce production costs.
- Modernizing sugar mills to enhance efficiency and cut processing delays.
- Revisiting lease agreements for public sugar mills to ensure transparency and public interest.
- Enhancing local sugar consumption by restricting illegal sugar imports and boosting local competitiveness.
Conclusion
The Kenya Sugar Board’s decision to raise the minimum sugarcane price to Ksh.5,500 per tonne is a bold and commendable move. It signals the government’s renewed focus on rebuilding a sector that holds immense potential for Kenya’s rural economy. While challenges remain, particularly around enforcement and transparency, this pricing revision offers a glimmer of hope for farmers and stakeholders alike.
As the May 26 implementation date approaches, all eyes will be on how sugar millers respond to the directive. For now, sugarcane farmers in Kenya can look forward to better returns and a possible turning point in the journey toward a reformed, profitable, and sustainable sugar industry.