The Government has reaffirmed its ban on sugar imports and suspended the issuance of new sugar import licences, saying the country has made significant progress in increasing local sugar production and reducing dependence on imported sugar.

Government Reaffirms Sugar Import Ban as Kenya Sugar Board Elections Set for September 5
Agriculture Cabinet Secretary Mutahi Kagwe addresses sugar farmers and industry stakeholders during a consultative meeting where the Government reaffirmed the sugar import ban, announced Kenya Sugar Board elections and unveiled new reforms aimed at strengthening the local sugar industry.

The announcement was made by Agriculture and Livestock Development Cabinet Secretary Sen. Mutahi Kagwe during a consultative meeting with sugar farmers, industry stakeholders and officials from the Kenya Sugar Board, where the Government also confirmed that elections for five regional grower directors will be held on September 5, 2026.

The elections will mark a major step in fully operationalizing the Kenya Sugar Board under the Sugar Act, 2024, strengthening farmer representation in the management of the country’s sugar sector.

Speaking during the meeting, CS Kagwe directed that no new sugar import licences should be issued, saying current local production is sufficient to meet domestic demand.

He said Kenya has recorded a significant reduction in sugar imports over the past year, with imported volumes falling by more than 71 percent, from approximately 210,000 metric tonnes last year to about 60,000 metric tonnes this year.

According to the Cabinet Secretary, the decline has been driven partly by the KSh40 per kilogram excise duty introduced under the Finance Act, 2026, alongside measures aimed at strengthening domestic sugar production and protecting local farmers.

The Government said the long-term objective is to transform Kenya from a sugar-importing nation into a competitive sugar exporter by increasing production, improving efficiency and supporting local millers.

In another major policy shift, the Ministry announced stricter licensing requirements for investors seeking to establish new sugar factories.

Under the new rules, prospective investors will be required to demonstrate ownership of adequate nucleus estates and sufficient contracted outgrowers before receiving operating licences.

The Ministry said the changes are intended to reduce cane poaching, which has remained one of the biggest challenges affecting the sustainability of the sugar industry.

CS Kagwe also announced significant progress in settling outstanding payments owed to sugar farmers.

He said historical arrears have been reduced from nearly KSh2 billion to approximately KSh265 million, with the Government committing to clear the remaining balance in consultation with the National Treasury.

The Cabinet Secretary also directed millers to address delayed payments to farmers without further delay, saying timely payment remains critical to maintaining confidence in the sector.

Farmer organizations welcomed the announcement of the September elections, saying the exercise will complete the establishment of the Kenya Sugar Board through the election of five grower directors representing the country’s five sugar-growing regions.

During the consultations, stakeholders also called for the release of the infrastructure component of the Sugar Development Levy to improve roads and other essential infrastructure supporting cane transportation.

They further appealed to the Government to write off more than KSh48 billion in debts owed by former outgrower institutions and maintain stability in sugarcane pricing.

Growers expressed support for retaining the current KSh5,500 per tonne sugarcane price, noting that previous pricing had reached KSh5,750 per tonne.

CS Kagwe reaffirmed the Government’s commitment to transparency, accountability and continued reforms aimed at building a more competitive and farmer-driven sugar industry.

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, a move expected to strengthen research and innovation within the sugar sector.

The latest reforms form part of the Government’s broader strategy to improve farmer incomes, strengthen local manufacturing and enhance the competitiveness of Kenya’s sugar industry while reducing reliance on imports.

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