Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe has toured West Kenya Sugar Company, in a visit aimed at promoting best practices in sugar production just weeks after the firm secured a 30-year lease to operate Nzoia Sugar Company.
West Kenya Sugar Company, owned by the Rai Group, is now the operator of Nzoia Sugar under the lease agreement—a move the government hopes will help revive the state-owned mill and bring stability to the sugar sector.
During the visit, CS Kagwe unveiled a national Ksh 4 billion annual investment plan funded through the Sugar Development Levy (SDL). The fund is intended to support sustainable growth across the entire sugar industry.
According to the Cabinet Secretary, 40% of the SDL—nearly Ksh 2 billion—will go towards cane development programs across the country. The remaining allocation will support key strategic areas:
15% (Ksh 600 million) – Roads rehabilitation in sugarcane-growing regions
15% (Ksh 600 million) – Research and innovation for improved industry productivity
15% (Ksh 600 million) – Factory rehabilitation across the sector
5% (Ksh 200 million) – Strengthening farmer associations
10% – Administrative operations under the Sugar Board
“These investments are designed to secure the long-term sustainability of the sugar industry,” CS Kagwe said, noting that the allocations follow extensive consultations and concerns raised by farmers’ unions and miller representatives.
He urged Kenyans to support investors who have committed significant capital to the sector, pointing to companies like West Kenya that are helping turn around struggling institutions. “We must shift from being net importers to exporters of sugar by 2026,” he said.
The CS commended West Kenya Sugar for its strong farmer-centered policies, including weekly payments to over 120,000 contracted farmers and consistent monthly wages for staff. The company disburses over Ksh 14 billion annually in farmer payments and invests an additional Ksh 7 billion annually in cane development initiatives.
According to the Agriculture and Food Authority (AFA), as of September 30, 2024, nearly 50% of all land under sugarcane cultivation in Kenya is managed by the Rai Sugar Group, underlining the group’s growing role in the industry’s development.
To address the growing concern of cane poaching, CS Kagwe called on farmers to remain loyal to mills that support them through development programs. He also directed the Sugar Board to convene a meeting to establish and enforce clear zonal boundaries among millers to reduce conflict.
He further advised farmers to allow cane to fully mature before harvesting to improve sugar quality and boost Kenya’s competitiveness in the global market once exports commence.
Kagwe also toured Butali Sugar Mills, another key private miller in Kakamega County, as part of his broader assessment of private sector participation in sugar sector reforms.
