Kagwe Freezes New Sugar Import Licences as Kenya Sets September Elections for Sugar Board

 The Government has moved to tighten control of Kenya’s sugar industry, reaffirming a ban on sugar imports and freezing the issuance of new import licences as efforts intensify to protect local farmers.

Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe made the announcement during a consultative meeting with sugar farmers, industry stakeholders and officials from the Kenya Sugar Board.

Kagwe said the Government would not issue new sugar import licences, arguing that local sugar production is now sufficient to meet the country’s domestic demand.

The CS said sugar imports had fallen by more than 71 per cent, from about 210,000 metric tonnes last year to approximately 60,000 metric tonnes this year.

He attributed part of the decline to the Sh40 per kilogramme excise duty introduced under the Finance Act, 2026, saying the Government was working to create a more favourable environment for local sugar producers and eventually position Kenya as a sugar-exporting country.

New Rules for Sugar Factories

Kagwe also announced tougher licensing requirements for investors seeking to establish new sugar factories.

Under the proposed approach, investors will be required to demonstrate that they have adequate nucleus estates and enough contracted farmers before receiving licences.

The move is aimed at addressing cane poaching, which has remained a major source of tension among sugar farmers and millers.

Kagwe said the Government was also making progress in addressing long-standing payments owed to sugar farmers.

According to the CS, historical arrears that previously stood at nearly Sh2 billion have been reduced to about Sh265 million.

He pledged that the remaining debt would be cleared in consultation with the National Treasury, while directing immediate action to address delayed payments by millers.

Sugar Board Elections Set for September 5

The Government has also confirmed September 5, 2026 as the date for elections of five regional grower directors to the Kenya Sugar Board.

The elections are expected to complete the constitution of the Board and strengthen farmer representation under the Sugar Act, 2024.

The five directors will represent Kenya’s five major sugar-growing regions, giving farmers a direct voice in the management and future direction of the industry.

Farmer organisations welcomed the announcement, saying the elections would mark an important step towards fully operationalising the Kenya Sugar Board.

However, growers also raised several outstanding concerns, including the release of the infrastructure component of the Sugar Development Levy and the proposed write-off of more than Sh48 billion owed by former outgrower institutions.

Farmers further called for stability in cane pricing, with many supporting the current Sh5,500 per tonne price while recalling the previous rate of Sh5,750 per tonne.

Kagwe said the Government remained committed to reforms designed to make the sugar sector more competitive, transparent and profitable while placing farmers at the centre of the industry.

He also announced that a substantive Chief Executive Officer for the Kenya Sugar Research and Training Institute (KESRETI) would be appointed by the end of the week.

The latest measures come at a critical time for Kenya’s sugar sector, with farmers pushing for better returns, timely payments and stronger protection from cheap imports while the Government seeks to revive local production and reduce the country’s dependence on imported sugar.