Agriculture CS Kagwe bar sugar imports, warn against market disruption
Agriculture Cabinet Secretary Mutahi Kagwe has ordered an immediate halt to new sugar import licences, saying Kenya has sufficient stocks to meet domestic demand and warning that continued imports could undermine local producers.
Kagwe directed the Kenya Sugar Board (KSB) to stop issuing fresh import licences as the government moves to protect farmers and stabilise the local sugar market.
“I have asked the Kenya Sugar Board to stop sugar imports. Henceforth, I do not want any licence issued for sugar imports,” Kagwe said during a high-level consultative meeting at Kilimo House attended by farmers, industry stakeholders and government officials.
He said local production was sufficient for the first time, making additional imports unnecessary.
“We are going to ensure we do not mess up the internal market because of imports. We are not going to import sugar at the risk of the local industry,” he said.
Kagwe said sugar imports had fallen sharply from about 210,000 metric tonnes last year to approximately 60,000 metric tonnes this year.
He attributed part of the decline to the Sh40-per-kilogramme excise duty introduced under the Finance Act, 2026, saying the measure had helped discourage imports while creating room for local producers to compete.
The CS also announced tighter conditions for licensing new sugar factories, amid concerns over cane poaching that has destabilised relations between millers and farmers.
He said prospective millers would have to demonstrate access to sufficient cane before receiving licences, including establishing nucleus estates and securing contracts with outgrowers.
“Before we licence a factory, we must know where the nucleus farm is and where the outgrowers are,” Kagwe said.
The CS said the government was also close to clearing historical arrears owed to sugarcane farmers. Of nearly Sh2 billion previously outstanding, he said only about Sh265 million remained unpaid.
“My happiest day will be when government owes sugar farmers absolutely nothing,” Kagwe said, adding that he had engaged Treasury CS John Mbadi to facilitate payment of the outstanding amount.
Kagwe further directed that fresh arrears being accumulated by some millers be addressed urgently after farmers raised concerns over delayed payments.
He announced that a substantive CEO of the Kenya Sugar Research and Training Institute (KESRETI) would be appointed by the end of the week to strengthen research, develop improved cane varieties and enhance engagement with farmers.
On the proposed Kenya Agricultural Development Corporation Bill, Kagwe said Parliament could amend the legislation to reflect stakeholders’ concerns.
Meanwhile, elections for five regional grower representatives to the KSB have been scheduled for September 5, 2026.
Election Committee chair Harun Khator said the polls would complete the Board’s membership and allow it to fully discharge its mandate under the Sugar Act, 2024.
KSB Chief Executive Officer (CEO) Jude Chesire said key decisions, including those concerning the Sugar Development Levy, would be considered once the Board is fully constituted.
