Kenya’s Sugar Sub-Sector Revives with New Mills and Subsidies

After years of decline, Kenya’s sugar industry is showing signs of recovery, with production rising by 18% in 2023 to 720,000 metric tonnes. The government’s Ksh5 billion bailout for Mumias and Sony sugar factories, coupled with subsidies for cane farmers, has stabilized supply. Import dependency dropped to 22% from 45% in 2022. New private mills in Western Kenya are boosting competition. However, inefficiencies persist: production costs remain high at Ksh72/kg versus regional average of Ksh55. The Sugar Directorate is pushing for factory modernization and out-grower consolidation. With a 100% import duty in place, local sugar retails at Ksh180/kg, offering relief to consumers and bakers. Full self-sufficiency is targeted by 2026.