The minimum sugarcane price in Kenya has been reduced from KSh 5,750 to KSh 5,500 per tonne. The Kenya Sugar Board says the new rate balances farmer earnings and miller sustainability.

Minimum Sugarcane Price in Kenya Revised Down to KSh 5,500 Per Tonne Amid Rising Sugar Output

Government Lowers Sugarcane Price as Sugar Output Rises

The government has revised the minimum sugarcane price in Kenya. The new farmgate rate is set at KSh 5,500 per tonne, down from KSh 5,750. The adjustment follows consultations between stakeholders in the sugar sector. The goal is to balance the interests of farmers and millers while ensuring the sustainability of the industry.

The Kenya Sugar Board issued a directive on April 24, 2026. All licensed millers were instructed to implement the revised price immediately. They must also ensure that payments to farmers are made without delay. The decision followed deliberations by the 4th Interim Sugarcane Pricing Committee. The committee reviewed prevailing market conditions before arriving at the new rate.

The pricing review comes as Kenya records stronger sugar output in 2026. Improved cane availability and higher factory throughput are driving the increase. The leasing of four previously idle state-owned sugar mills to private operators has added to production capacity. This has increased local sugar supply and put downward pressure on market prices.

Why the Price Cut Was Necessary

A 50 kilogram bag of sugar previously retailed at around KSh 7,000 when the earlier cane price of KSh 5,750 per tonne was set. Now, the same bag sells between KSh 6,000 and KSh 6,100. Industry stakeholders noted that sustaining high raw material costs while sugar prices continue to fall risks undermining the operational viability of mills.

Sources familiar with the discussions said some millers had pushed for a steeper reduction to KSh 5,000 per tonne. They cited falling sugar prices and tightening margins. The government, however, settled on KSh 5,500 per tonne to cushion farmers from a sharper cut while responding to the changed market environment.

According to the Ministry of Agriculture, the review was necessary to keep factories operational and the industry sustainable. “With more sugar in the market, prices have dropped from about KSh 7,000 to between KSh 6,000 and KSh 6,100 per 50kg bag, making the review necessary,” the ministry stated.

Kenyan Farmers Still Earn More Than Regional Peers

Despite the reduction, Kenyan sugarcane farmers continue to receive higher returns than their regional counterparts. Farmers in Tanzania earn approximately KSh 4,900 per tonne. Those in Uganda receive around KSh 4,500 per tonne. Officials cited these comparisons to argue that growers in Kenya remain among the better compensated producers in East Africa.

The Kenya Sugar Board has stated that the new set price is still high compared to neighbouring countries. “This new price is comparatively high in the region. You are hereby requested to adhere to the new minimum cane price while making payments to the farmers on time,” the board stated.

The directive was formally addressed to major millers, including West Kenya Sugar Company, Kibos Sugar and Allied Industries, Butali Sugar Mills, and Mumias Sugar (2021) Limited, among others. The directive, signed by Acting CEO Jude Chesire, ordered all millers to comply with the revised rate and ensure timely payments to farmers.

Reforms Aim to Strengthen Kenya’s Sugar Industry

The revision is part of broader reforms being led by Agriculture Cabinet Secretary Mutahi Kagwe. The aim is to strengthen the sugar sector, improve mill operations, and attract long-term investment. Officials said the overarching goal is to build an industry where farmers earn fairly, factories remain financially sustainable, and Kenya reduces its dependence on imported sugar.

The minimum sugarcane price in Kenya has long been a contentious issue. The industry has been plagued by mismanagement, debt ridden state-owned mills, and periodic policy shifts that disrupt planning. The latest price cut risks reigniting tensions between farmers, millers, and regulators.

Farmers had previously expressed concerns over delays in payments and fluctuating cane prices. Millers have also raised issues related to high operational costs and efficiency challenges. The government maintains that the revised rate is part of ongoing reforms in the sugar sector. These reforms aim to improve transparency, boost productivity, and ensure long-term stability in the industry.

Stakeholders are expected to continue engagements as part of broader reforms targeting improved sugar production, enhanced farmer incomes, and revitalization of Kenya’s sugar industry. The new price is expected to take effect immediately. It will impact sugarcane deliveries across growing regions in the country. Authorities say the review was necessary to maintain equilibrium between fair earnings for farmers and operational viability for sugar milling companies.

The minimum sugarcane price in Kenya will continue to be reviewed as market conditions change. Farmers, millers, and the government will need to work together to build a sustainable sugar industry. The path forward requires trust, transparency, and a shared commitment to making the sector work for everyone.

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