Kenya’s sugar sector has received a significant policy shift after the Kenya Sugar Board formally approved a new minimum sugarcane price of KSh 5,500 per tonne, a move aimed at improving farmer earnings and stabilizing the industry.
The directive, dated April 24, 2026, was issued through an official communication addressed to multiple sugar millers across the country, including firms in Kisumu, Bungoma, Kakamega, Mumias, and other key sugar-producing regions. The letter, signed by Acting Chief Executive Officer Jude Chesire, follows deliberations by the Interim Sugarcane Pricing Committee established under the Ministry of Agriculture and Livestock Development.
According to the communication, the new price takes immediate effect, signaling urgency in addressing long-standing concerns from farmers over low returns and delayed payments. The pricing decision was informed by a series of consultations and meetings held throughout April 2026, both virtually and physically, reflecting attempts to incorporate stakeholder input before finalizing the adjustment.
The Kenya Sugar Board noted that the revised price is comparatively higher than prevailing rates in the region, positioning Kenya’s farmers more competitively while also attempting to cushion them against rising production costs. For years, sugarcane farmers have faced challenges ranging from delayed payments by millers to fluctuating prices that often fail to reflect the true cost of cultivation.
In its directive, the Board has instructed all millers to strictly adhere to the new minimum price and ensure that farmers are paid promptly. This emphasis on timely payment is particularly significant, as delayed compensation has been one of the most persistent grievances within the sector, often leaving farmers struggling with cash flow and discouraging continued production.
The letter was widely circulated to major industry players, including Kibos Sugar & Allied Industries, Nzoia Sugar, Chemelil Sugar, Butali Sugar Mills, Transmara Sugar Company, West Kenya Sugar Company, Mumias Sugar, Sukari Industries, Busia Sugar Industry, and others. This broad distribution underscores the nationwide impact of the directive and the expectation that all millers align with the new pricing structure.
New Sugarcane Prices pic.twitter.com/2Tf7cXHKfY
— Cabinet Secretary Agriculture & Livestock Dev’t (@CS_MoALD) April 25, 2026
Copies of the communication were also sent to senior government officials, including Mutahi Kagwe and Principal Secretary Dr. Kipronoh Ronnoh, indicating high-level oversight and the importance attached to the reforms within the agriculture sector.
The move comes at a time when Kenya’s sugar industry is undergoing renewed focus, with efforts aimed at reviving struggling mills, reducing reliance on imports, and improving farmer livelihoods. By setting a higher minimum price, the government appears to be signaling its commitment to making sugarcane farming more viable and attractive, particularly for smallholder farmers who form the backbone of the sector.
However, the success of the new pricing policy will largely depend on enforcement and compliance. Historically, price directives have sometimes faced resistance or inconsistent implementation, particularly from millers dealing with operational and financial constraints. Ensuring that the new rate is uniformly applied—and that payments are made on time—will be critical in determining whether the policy achieves its intended impact.
For farmers, the announcement brings cautious optimism. A guaranteed minimum of KSh 5,500 per tonne represents a potential improvement in income, but many will be watching closely to see whether the directive translates into real change on the ground.
As the new price takes effect, the sugar sector enters a critical phase where policy, enforcement, and industry cooperation will need to align to deliver meaningful and lasting reform.
