Sugar import ban still in effect, CS Kagwe reaffirms as Gov’t halts new import licences

Agriculture
Sugar import ban still in effect, CS Kagwe reaffirms as Gov’t halts new import licences

The Government has reaffirmed its ban on sugar imports and frozen the issuance of new sugar import licences as the long-awaited elections for five regional grower directors to the Kenya Sugar Board were set for September 5, 2026, marking a major milestone towards fully operationalizing the Board under the Sugar Act, 2024.

The announcements were made during a high-level consultative meeting convened by Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe at Kilimo House with sugar farmers, industry stakeholders and officials from the Kenya Sugar Board.

While CS Kagwe announced a raft of measures aimed at protecting local sugar farmers and strengthening the sector, the official election date was declared by Harun Khator, Chairperson of the Kenya Sugar Board Grower Directors Election Committee and Secretary Administration in the State Department for Livestock Development.

Khator announced that, following consultations with stakeholders, the committee had unanimously agreed to hold the elections on Saturday, September 5, 2026, with the election notice to be published on August 6.

“The powers have been vested in my office to declare these elections. I therefore officially announce that the elections for the five grower directors representing the five sugar-growing regions will be held on Saturday, September 5, 2026. We shall work with all stakeholders to ensure the elections are conducted in accordance with the provisions of the law,” Khator said.

The elections will fill the five grower representative positions on the Kenya Sugar Board as provided under the Sugar Act, 2024, completing the Board’s membership and enabling it to become fully operational.

Kenya Sugar Board Chief Executive Officer Jude Chesire said the election of the five grower directors is necessary to fully constitute the Board in accordance with the law.

He noted that several decisions requiring approval by the Board, including matters relating to the Sugar Development Levy, will be considered once the Board is fully constituted and operating within the legal framework.

CS Kagwe reaffirmed the Government’s decision to halt sugar imports and directed that no new licences be issued for sugar importation, saying Kenya has now produced sufficient sugar to meet domestic demand without disrupting the local market.

“I have asked the Kenya Sugar Board to stop sugar imports. Henceforth, I do not want any licence issued for sugar imports. As at now, what we have produced is sufficient for the first time. 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.”

The Cabinet Secretary said sugar imports have reduced significantly from about 210,000 metric tonnes last year to about 60,000 metric tonnes this year, attributing the decline partly to the KSh40 per kilogram excise duty introduced under the Finance Act, 2026, which has discouraged imports while safeguarding local producers.

He said the Government’s priority is now to protect local production as Kenya prepares to transition from a sugar-importing country to a sugar-exporting nation.

CS Kagwe also announced stricter licensing requirements for new sugar factories to address rampant cane poaching, saying investors seeking milling licences must demonstrate adequate nucleus estates and contracted outgrowers before approval.

“Before we licence a factory, we must know where the nucleus farm is and where the outgrowers are.”

The Cabinet Secretary further assured farmers that Government is moving to clear the remaining historical arrears owed to cane farmers.

Out of nearly KSh2 billion owed by Government, only about KSh265 million remains outstanding.

“My happiest day will be when Government owes sugar farmers absolutely nothing,” Kagwe said, revealing that he had already engaged National Treasury Cabinet Secretary John Mbadi to facilitate payment of the remaining balance.

He also directed that concerns over delayed payments by some millers be addressed urgently after farmers complained that some factories continue accumulating fresh arrears despite improvements in the industry.

The elections received overwhelming support from farmer organisations, which insisted that the five grower directors must be elected rather than nominated.

Speaking on behalf of the Kenya National Federation of Sugarcane Farmers, Secretary General Kilion Osur welcomed the implementation of the Sugar Act, 2024, saying farmers have waited long enough for the reforms.

He said growers had initially prepared to elect their representatives on June 25, but the exercise was delayed after court cases were filed by individuals whom he claimed were not genuine farmers.

Osur said farmers had been advised that the conservatory orders issued by the Kakamega High Court had been lifted, clearing the way for elections.

“We appreciate the committee appointed to oversee the elections. We want the Sugar Act implemented in totality. We do not want nominated directors; we want elections. If nomination is the best option, then Members of Parliament should also be nominated instead of being elected.”

He further accused individuals with interests outside the farming community of sponsoring court cases aimed at frustrating reforms in the sugar industry.

Farmers also raised concerns over delayed payments in Busia and Nzoia, saying prolonged payment periods have affected livelihoods.

Speaking on behalf of farmers, Atyang Atyang called for the release of the infrastructure component of the Sugar Development Levy to improve sugar roads, increased funding for cane development and the operationalization of the allocation meant for farmer advocacy organisations.

He argued that previous sugar imports had contributed to depressed local markets and delayed farmer payments.

Farmer representative Stephen Sifuna urged Government to clear outstanding obligations owed to farmers and workers following the leasing of public sugar mills and expressed concern over some millers continuing to accumulate payment arrears despite operating under the same ownership as factories paying farmers promptly.

Stakeholders also urged Government to write off more than KSh48 billion owed by former outgrower institutions to the Kenya Sugar Board, saying the move would strengthen farmer organisations and enable them to benefit more effectively from future cane development programmes.

Farmer leaders further appealed for payment based on sucrose content instead of the current formula and called for stability in cane pricing.

Representing young farmers, stakeholders said while they would welcome the restoration of the previous KSh5,750 per tonne cane price, they would support retaining the current KSh5,500 per tonne provided it remains sustainable for farmers, millers and consumers.

Responding to the concerns, CS Kagwe said cane pricing requires striking a delicate balance between the interests of farmers, millers and consumers.

“If nobody is completely satisfied, then it is probably a fair price because we must balance the interests of all the players.”

The Cabinet Secretary also disclosed that a substantive Chief Executive Officer for the Kenya Sugar Research and Training Institute (KESRETI) will be appointed by the end of the week to strengthen research, development of improved sugarcane varieties and farmer engagement.

He pledged total accountability and transparency in the management of the sugar sector and reiterated that the Kenya Sugar Board would work closely with county governments in implementing reforms.

On the proposed Kenya Agricultural Development Corporation (KADCO) Bill, which has attracted concern from stakeholders, CS Kagwe said Parliament remains free to amend the legislation to reflect the views of the industry.

“This Bill is not a bible. It is amendable, and if it appears unpopular within the sector, then that is communication Parliament should receive.”

Farmer leaders, including Ezra Okoth, Kilion Osur, Nathan Narupa, Simon Wesechere and Atyang Atyang, pledged to work together to ensure peaceful elections and successful implementation of the Sugar Act.

They announced plans to sign a memorandum of understanding bringing together sugar farmer organisations across the country, saying unity among growers is essential to sustaining ongoing reforms and increasing farmer incomes.

With the September 5 elections now set, the sugar sector is expected to reach one of the final milestones in implementing the Sugar Act, 2024, with the election of the five grower directors completing the membership of the Kenya Sugar Board and enabling it to fully execute its mandate as the country’s regulator while supporting ongoing reforms aimed at making Kenya’s sugar industry more competitive and profitable for farmers.

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