KSh 4B Annual Boost Aims to Lift Kenya’s Ailing Sugar Sector
KAKAMEGA — Agriculture Cabinet Secretary Mutahi Kagwe has announced a KSh 4 billion annual funding plan to revive Kenya’s struggling sugar sector. The initiative will draw its resources from the Sugar Development Levy and focus on strengthening cane farming, road infrastructure, research, and factory rehabilitation.
Kagwe made the announcement during a visit to West Kenya Sugar Company, which recently secured a 30-year lease to manage the state-owned Nzoia Sugar. The lease is part of a broader government strategy to restore public sugar mills and increase production.
“These investments are designed to secure the long-term sustainability of the sugar industry,” Kagwe said during the tour.
Under the plan, 40% of the levy approximately KSh 1.6 billion will be directed toward cane development programs across sugar-growing regions. Another 15%, or KSh 600 million, is set aside for road rehabilitation to improve transport access for farmers.
An equal 15% allocation will support research efforts aimed at improving crop yields and factory efficiency. Factory rehabilitation will receive another 15%, while 5% will strengthen farmer associations. The remaining 10% will fund administrative costs under the Sugar Board.
Kagwe said these allocations were based on feedback from farmer groups and miller representatives who have called for targeted investment to address systemic issues.
The CS also visited Butali Sugar Mills in Kakamega County, underscoring the role of private sector players in the sugar reform agenda. He praised West Kenya Sugar for its structured support to farmers, including prompt weekly payments and sustained investments in cane development.
Data from the Agriculture and Food Authority shows that as of September 30, 2024, the Rai Sugar Group which owns West Kenya Sugar manages close to 50% of Kenya’s total sugarcane acreage, making it a key player in the sector’s recovery.
Kagwe urged farmers to remain committed to millers that invest in them. “We must shift from being net importers to exporters of sugar by 2026,” he said.
He warned against cane poaching and directed the Sugar Board to hold talks with millers to define and enforce zonal boundaries. He also encouraged farmers to wait until sugarcane fully matures before harvesting to improve sugar quality and support export goals.
Kagwe’s tour signals a push to revive Kenya’s sugar industry through structured, public-private collaboration focused on practical support for producers and accountability in sector management.
