Kenya’s long struggle to revive its sugar sector has entered a new phase after the government moved to permanently protect local producers by stopping the issuance of new sugar import licences.

Agriculture Cabinet Secretary Mutahi Kagwe said the country has reached a point where domestic production is sufficient to meet local demand, marking a major policy shift for a sector that has relied heavily on imported sugar for years.

The announcement comes as Kenya prepares for elections of five sugar grower representatives to the Kenya Sugar Board on September 5, 2026 — a process expected to complete the board’s composition and allow it to fully exercise its mandate under the Sugar Act, 2024.

For millions of farmers who depend on sugarcane farming, the move raises a critical question: Will ending imports finally translate into better incomes, faster payments and a more stable industry?

From Import Dependency to Local Production Push

Kenya has historically depended on imported sugar to bridge gaps between local production and consumption.

According to CS Kagwe, sugar imports have declined significantly, falling from about 210,000 metric tonnes last year to approximately 60,000 metric tonnes this year.

The government attributes the decline partly to measures introduced under the Finance Act, 2026, including a KSh40 per kilogram excise duty on imported sugar, which officials say has helped reduce import pressure while supporting local producers.

Kagwe said allowing more imports at a time when local factories are producing enough sugar would undermine farmers who have struggled for years with low cane prices, delayed payments and mill closures.

“We are not going to import sugar at the risk of the local industry,” Kagwe said.

Why Sugar Farmers Are Watching Closely

The import freeze is being welcomed by farmer organisations, but they say it is only one piece of a much larger puzzle.

Sugarcane farmers have for years complained about:

• delayed payments from millers;
• low earnings from cane deliveries;
• inadequate investment in cane development;
• poor roads affecting transportation;
• competition from cheaper imported sugar.

Farmer leaders argue that protecting local production must be matched with reforms that ensure farmers benefit from the industry.

The Kenya Sugar Board elections scheduled for September are therefore being viewed as a major test of whether farmers will have a stronger voice in decision-making.

The five elected grower directors will represent Kenya’s sugar-growing regions and complete the membership of the board

The Sugar Act 2024 Test: Who Controls the Future of the Sector?

The upcoming elections are part of the implementation of the Sugar Act, 2024, which seeks to restructure regulation of the sugar industry.

Kenya Sugar Board CEO Jude Chesire said the board cannot fully operate without the elected grower representatives.

Once complete, the board will be expected to oversee key industry decisions, including matters linked to the Sugar Development Levy.

Farmers have insisted that their representatives must be elected rather than appointed, arguing that direct representation is necessary after years of challenges in the sector.

Beyond imports, the government is also targeting another long-standing problem: uncontrolled expansion of sugar mills without enough cane supply.

CS Kagwe said new milling licences will only be issued to investors who demonstrate access to:

• a reliable nucleus estate;
• contracted farmers;
• sufficient cane supply.

The move is aimed at reducing cane poaching, where competing factories fight over limited sugarcane from farmers, affecting planning and production

Farmers Still Await Billions in Payments

Despite recent improvements, outstanding debts remain a major concern.

Kagwe said government arrears owed to sugar farmers have reduced, with about KSh265 million remaining from nearly KSh2 billion owed.

The CS said he had engaged Treasury CS John Mbadi over clearing the remaining balance.

However, farmers also raised concerns over private millers accumulating fresh debts despite operating in the same sector as factories that continue paying farmers on time.

September 5, 2026

Election of five sugar grower directors to the Kenya Sugar Board.

After board formation

The board is expected to become fully operational and make decisions on industry financing and regulation.

Pending issues to watch:

• whether sugar prices remain affordable for consumers;
• whether farmers receive timely payments;
• how the government handles outstanding debts;
• whether local production can consistently meet national demand.

Bigger Picture: Can Kenya Become a Sugar Exporter?

The government’s long-term ambition is to transform Kenya from a sugar-importing country into an exporter.

However, industry experts and farmers have previously argued that achieving this requires more than restricting imports.

The sector must address productivity challenges, ageing factories, research into improved cane varieties, farmer financing and efficient management of public mills.

CS Kagwe said a new substantive CEO for the Kenya Sugar Research and Training Institute (KESRETI) would be appointed to strengthen research and development of improved sugarcane varietie