Kenya Sugar Board Shuts Down Milling Operations in Western Kenya Amid Cane Shortage
The Kenya Sugar Board (KSB) has announced a three-month shutdown of all milling operations in the Lower and Upper Western sugarcane catchment areas, citing a severe shortage of mature cane. The decision, set to take effect from July 14, 2025, is aimed at preventing further financial losses to farmers and stabilising the struggling sugar industry.
In a press statement issued on Monday, KSB’s Acting Chief Executive Officer Jude Chesire said the temporary closure follows extensive consultations with stakeholders, including farmers, millers, county representatives, and industry regulators. The key recommendation from these discussions was the urgent need to pause operations in regions where immature cane is being harvested and milled—resulting in reduced yields and heavy losses.
“This is due to inadequate cane development to match milling capacity,” said Chesire.
“Farmers are incurring losses due to lower cane yields associated with immature cane harvesting.”
Regions Affected by the Shutdown
The closure will affect two major sugar-producing zones:
- Lower Western Region: Mumias, Busia, and Siaya counties
- Upper Western Region: Bungoma, Kakamega, Trans-Nzoia, Uasin Gishu, and Northern Nandi counties
These areas represent the core of Kenya’s sugar belt, with thousands of smallholder farmers depending on sugarcane as their primary source of income. The shutdown is expected to temporarily disrupt sugar production, employment, and supply chains, but industry officials stress that it is a necessary step toward long-term sustainability.
Why the Shutdown Was Deemed Necessary
According to KSB, the root of the crisis lies in overmilling, where factories have continued to process cane despite a mismatch between their capacity and the volume of mature cane available. This has led to the rampant harvesting of immature cane, which not only delivers poor sugar yields but also weakens the productivity of the entire industry.
Jude Chesire explained that many factories were operating below efficiency levels due to aggressive cane procurement wars and lack of planning around raw material development.
“The current cane supply cannot sustain all the factories in the region,” he said.
“To ensure sustainability, millers must stop overreliance on immature cane and invest in serious cane development programmes.”
Details of the Suspension Period
The suspension begins on July 14, 2025, and will last for a period of three months. During this time:
- All milling operations in the affected regions must cease.
- No farmer will be allowed to harvest cane unless expressly authorised by the Sugar Board for special cases.
- KSB will conduct a Cane Availability Survey within two months to establish how much mature cane will be available once the moratorium ends.
- The survey findings will guide the phased resumption of milling based on factory-specific capacities.
The shutdown was formalised during a stakeholder meeting held on Friday, July 4, at Sarova Imperial Hotel in Kisumu. Participants unanimously agreed that unless action was taken, the entire value chain—from farmer to factory—faced imminent collapse.
Impact on Farmers and Millers
While the closure may lead to short-term income loss for cane farmers, especially those with standing crops nearing harvest, Chesire reassured stakeholders that long-term gains would outweigh the immediate inconvenience.
“We understand the impact this will have on livelihoods. However, continued immature harvesting is a recipe for long-term disaster,” he noted.
Some factories had reportedly been purchasing immature cane at low prices, further disadvantaging farmers. By enforcing a uniform break across the region, KSB hopes to protect farmers from exploitative practices and ensure that the next harvest yields maximum benefit.
Millers have been directed to use this downtime to invest in cane development, retool their operations, and align their milling capacities with the actual cane available in their respective zones.
“All millers should aggressively develop cane to ensure an adequate supply of raw material in future,” said Chesire.
Industry Experts React
Agricultural economists and sugar industry experts have welcomed the move as bold but necessary, considering the state of Kenya’s sugar industry. Once a net exporter, the country has in recent years been forced to import sugar to meet domestic demand due to dwindling production.
Dr. Paul Wekesa, a sugar policy analyst, told reporters that lack of structured planning, weak regulation, and political interference had contributed to the current crisis.
“For years, factories have been chasing cane from farmers without developing their own nucleus estates,” Wekesa noted.
“That model is unsustainable. We need miller-farmer partnerships that focus on long-term development.”
He added that without reforms, Kenya risks losing its competitive edge in sugar production to neighbouring countries like Uganda and Tanzania.
What Happens After the Suspension?
KSB says that milling will resume only after results from the Cane Availability Survey confirm that each region has enough mature cane to justify operations. Millers who attempt to flout the directive could face penalties, suspension of licenses, or legal action, officials warned.
The board also plans to implement a Cane Zoning Framework, where factories will be allocated specific areas of operation to curb poaching and chaotic cane buying practices.
Additionally, a Cane Pricing Review is being considered to ensure farmers receive fair value for their produce, especially after waiting three months for harvesting.
Broader Implications for the Sugar Sector
Kenya’s sugar sector has been facing serious structural challenges for over a decade, including:
- High cost of production compared to global averages
- Inconsistent government support and subsidies
- Poor infrastructure in cane-growing regions
- Weak enforcement of regulations under the Agriculture and Food Authority (AFA)
The current intervention by KSB could signal the beginning of more aggressive reforms in the industry, particularly in how the value chain is regulated and how millers source their cane.
“We cannot continue this boom-and-bust cycle,” Chesire said.
“If we get it right now, we can secure jobs, improve farmer earnings, and build a sugar industry we can be proud of.”
Conclusion
The Kenya Sugar Board’s decision to halt milling operations in Western Kenya reflects a strategic shift toward long-term sustainability over short-term profits. While the impact will be felt in the coming months, especially by farmers and factory workers, stakeholders are optimistic that the move will help restore balance in the sector and boost future productivity.
As the country grapples with broader agricultural challenges, policy discipline, investment in research, and private-public collaboration will be key to ensuring that Kenya’s sugar industry doesn’t just survive—but thrives.