Sugar millers have been given seven days to pay farmers after receiving their sugarcane or risk penalties, including interest on delayed payments, as the Government moves to tighten regulations and protect growers from exploitation.

The Kenya Sugar Board (KSB) has warned millers against delaying payments, insisting that farmers should no longer be forced to wait indefinitely after delivering their cane.

KSB Chief Executive Officer Jude Chesire said the standard seven-day payment requirement is now being enforced, with contracts providing sanctions against millers who fail to comply.

The regulator is also intensifying efforts to tackle alleged weighbridge fraud, which has been blamed for significant losses among sugarcane farmers.

According to Chesire, some farmers have reportedly lost up to three tonnes of cane per trailer through weighing irregularities, meaning growers are paid for less cane than they actually delivered.

To address the problem, KSB is procuring mobile weighbridges that will enable the regulator to independently verify cane weights and strengthen monitoring across the sugar industry.

The Government is also investing in cane-testing units as Kenya moves towards a payment system that takes into account cane quality and sugar content rather than relying solely on the weight of cane delivered.

Millers have further been directed to establish clear cane harvesting frameworks by September 10. The measure is aimed at improving coordination between harvesting, transportation and delivery while preventing mature cane from remaining in farms for extended periods and losing quality.

Sugar Production Rebounds

The crackdown comes as Kenya's sugar industry continues to record a notable recovery in domestic production.

Kenya produced 815,454 metric tonnes of sugar in 2024, the highest level recorded in recent years. Production stood at 611,576 MT in 2025, while output between January and July 2026 reached 528,875 MT.

Production has accelerated in recent months, rising to 89,709 MT in June before hitting a record monthly output of 91,022 MT in July 2026.

Despite the recovery, Kenya remains heavily dependent on imports to meet domestic demand.

Annual sugar demand is estimated at about 1.2 million MT, consisting of approximately one million MT of brown/table sugar and 200,000 MT of white refined sugar used mainly by industries.

National sugar consumption reached approximately 1.216 million MT in 2025, creating a substantial supply gap.

Kenya imported 477,551 MT of sugar in 2025, while another 65,081 MT of brown sugar entered the country between January and July 2026, mainly from the COMESA and EAC regions.

Government Targets KSh30 Billion Import Bill

White refined sugar remains a particular concern, with KSB estimating that Kenya spends about KSh30 billion every year importing the commodity.

The Government believes the money can increasingly remain within the local economy if the country expands sugarcane production and develops sufficient domestic refining capacity.

As part of the immediate response, Kenya has begun refining imported raw sugar locally rather than relying entirely on imports of finished refined sugar.

Mombasa Sugar Refinery Limited, which has an installed refining capacity of approximately 150,000 MT annually, has imported 27,839 MT of raw sugar and commenced local refining.

KSB says safeguards have been put in place to ensure the imported raw sugar is not diverted into the table-sugar market before undergoing the required refining process.

The long-term strategy, however, is to increase domestic cane production.

Through KSB, the Ministry of Agriculture and Livestock Development is pushing measures aimed at expanding sugarcane acreage, improving productivity, increasing milling efficiency, promoting value addition and expanding local refining capacity.

The Government hopes the reforms will not only reduce Kenya's dependence on sugar imports but also ensure farmers earn more from their cane.

With stricter payment deadlines, tighter monitoring of weighbridges and a shift towards quality-based cane pricing, authorities are now seeking to make the sugar industry more transparent while putting farmers at the centre of Kenya's sugar recovery.