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Kenya sugar industry rebounds as output climbs 22%

Data released by the Kenya National Bureau of Statistics (KNBS) shows that sugar production rose by 21.98 per cent to 348,143 tonnes between January and May this year, compared to 285,418 tonnes produced during...

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Kenya sugar industry rebounds as output climbs 22%

Kenya's drive to revive the struggling sugar industry is beginning to pay off, with new figures showing factories produced nearly a quarter more sugar in the first five months of 2026.

Increased sugar cane deliveries by farmers, favourable weather and ongoing reforms have helped mills raise output, bringing the country closer to its long-term goal of producing enough sugar for local use and export.

Data released by the Kenya National Bureau of Statistics (KNBS) shows that sugar production rose by 21.98 per cent to 348,143 tonnes between January and May this year, compared to 285,418 tonnes produced during the same period in 2025.

The improved performance was supported by a sharp increase in sugar cane deliveries. Farmers supplied 3.9 million tonnes of cane to factories during the review period, up from 3.1 million tonnes recorded in the first five months of last year, representing a 25.1 per cent increase.

“On a cumulative basis, sugar production during the first five months of 2026 increased to 348.1 thousand metric tonnes, compared to 285.4 thousand metric tonnes recorded during the corresponding period of 2025,” said KNBS.

The latest growth marks a positive shift for a sector that has spent years battling low production, ageing processing plants, heavy debt and rising sugar imports to cover domestic shortages.

The government has placed the sugar industry at the centre of its agricultural reform agenda, with the aim of rebuilding local production, cutting reliance on imports and opening opportunities for exports to neighbouring markets.

Officials have linked the improved performance to reforms introduced under the Sugar Act, 2024, zoning of sugar cane growing areas and the decision to lease four State-owned sugar factories to private investors.

Sony, Nzoia, Chemelil and Muhoroni sugar factories were handed over to private operators under a programme designed to attract investment, improve factory operations and restore production after years of financial and operational challenges.

According to the National Treasury, the leasing programme protects a combined cane crushing capacity of 11,200 tonnes each day while encouraging private investment to modernise ageing factories.

The government also says the zoning of sugar cane catchment areas has helped curb cane poaching, improved planning by millers and enabled factories to make better use of their processing capacity.

Treasury estimates that the renewed growth in the sugar industry supports about 250,000 direct jobs and provides livelihoods to nearly six million people involved in farming, transport, milling and trade.

For years, the industry struggled with delayed payments to farmers, inefficient State-owned factories, ageing machinery and rising imports, all of which weakened the competitiveness of locally produced sugar and left the country dependent on imported supplies.

In April, the Kenya Sugar Board raised the minimum sugar cane price to Sh5,500 per tonne in a move aimed at improving farmers' earnings while ensuring millers remain financially stable as production continues to rise.

The increase in cane deliveries has also allowed factories to utilise more of their installed crushing capacity, which had previously remained underused because of limited raw material.

If favourable weather continues and factories maintain stable operations, the current trend is expected to support even higher sugar production in the months ahead.

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