The Senate Standing Committee on Agriculture, Livestock and Fisheries on Thursday met officials from the Kenya Sugar Board to discuss key issues affecting the country’s sugar industry, including cane pricing, licensing of mills and the impact of sugar imports, Uzalendo News reported.
The meeting was chaired by Wafula Wakoli, Senator for Bungoma County. Discussions focused on the implementation of reforms introduced under the Sugar Act 2024, as well as the progress of farmer registration and cane development programmes.
Officials told the committee that the current cane pricing system is based on a formula managed by the Sugarcane Pricing Committee. The committee includes representatives of farmers, millers, county governments from sugarcane-growing areas and the national government. Under this system, the price paid to farmers is linked to the average ex-factory price of sugar so that growers receive a share of the industry’s market returns.
Members were also informed that several measures have been introduced to make farmer payments more transparent. These include fixed timelines for millers to pay farmers, mandatory cane supply agreements and detailed payment statements for delivered cane. The system will gradually move to a quality-based payment structure where farmers are rewarded according to the sucrose content in their cane.
The committee also reviewed the regulation and licensing of sugar mills. According to the board, 17 sugar factories have been registered and licensed to operate in different cane-growing regions. However, Kwale International Sugar Company Ltd has not yet been granted a mill operating licence because it has not met regulatory requirements.
Lawmakers also examined the effect of sugar imports on the local industry. The board said higher imports in 2023 were necessary due to a shortage of mature sugarcane and the temporary shutdown of several mills to allow crops to mature. The situation improved in 2024 as cane supply increased and domestic sugar production rose.
Officials warned that illegal or uncontrolled sugar imports could push down local prices, reduce sales of locally produced sugar and disrupt mill operations, ultimately affecting farmers’ incomes. To address this, the government has stepped up monitoring through agencies such as the Kenya Revenue Authority and the Kenya Bureau of Standards.
On farmer registration, the board said more than 401,000 sugarcane farmers are currently registered across the country, with the highest numbers in Kakamega County, Bungoma County and Busia County.
The board also highlighted efforts to improve productivity, including promoting better farming practices, providing subsidised fertiliser, financing through the Sugar Development Fund and support from the Kenya Sugar Research and Training Institute.
Among the senators present were Alexander Munyi Mundigi, Catherine Mumma, Tom Ojienda and Abass Mohammed.
