Sugar farmers and industry stakeholders have raised concerns over proposed changes to the management and financing of the sugar sector under the Crops Laws Amendment Bill, 2026.
The stakeholders on Saturday in Machakos County presented their views before the National Assembly’s Departmental Committee on Agriculture and Livestock, chaired by Tigania West MP John Mutunga, as lawmakers scrutinise the proposed legislation.
The Bill, sponsored by Leader of the Majority Party Kimani Ichung’wah, proposes changes to the functions of sector-specific agricultural institutions and seeks to channel relevant funds to the Kenya Agribusiness Development Corporation Limited (KADCO).
Mutunga said the proposed establishment of KADCO is intended to address longstanding challenges in financing the agriculture sector.
The proposed corporation would bring together the Agricultural Finance Corporation (AFC) and the Commodities Fund under an institution anchored under the National Treasury.
“As a Committee, we are seeking to protect the agriculture sector, which we know is poorly funded, rather than take away from the sector by combining the strengths of these two agencies,” Mutunga said.
Nick Oloo of the Kenya Sugar Manufacturers Association (KESMA) questioned whether the proposed changes would add value to existing institutions serving the sugar industry.
He expressed concern that transferring funds from the Sugar Development Levy to KADCO could affect accountability within the sector and alter arrangements established under the Sugar Act, 2024.
Oloo also cited concerns over the impact of previous legislative changes on the sugar industry, saying the sector had experienced challenges in financing, cane development, factory rehabilitation and farmer support following the enactment of the Crops Act, 2013.
Atiang Atyang of the Kenya Association of Sugarcane and Allied Products (KASAP) urged the Committee to safeguard the gains made under the Sugar Act, 2024.
“We must protect what was achieved by the Sugar Act 2024. Before its enactment, the sugar sector was receiving the least portion under AFA and the Commodities Fund despite being among the largest sectors,” Atyang said.
Atyang also raised concerns about the proposed institutional framework, drawing comparisons with the Agricultural Development Corporation (ADC) and its role in the sugar industry.
William Kopi, Chairperson of the Butali Sugarcane Farmers Association, said the proposed financing model could affect the relationship between investors, Government and farmers, with possible implications for sugarcane production.
However, Michael Arum of the Sugar Campaign for Change supported the proposed amendments, saying the focus should be on developing an effective financing framework for smallholder farmers.
“The issue here is not simply which institution should manage the funds. It is simply proposing a financing architecture that will make smallholder farmers organized and financeable.”
Arum cited Malawi and South Africa as examples of countries that have adopted similar financing approaches, saying the models had supported the development of their sugar industries.
The Committee is expected to consider the views presented by stakeholders as it continues its scrutiny of the proposed amendments.