Kenya announces first-ever bonus for sugar farmers amid sector reforms

KENYA – Kenya’s President William Ruto has announced that sugarcane farmers will receive a bonus for the first time in January 2025.  

This milestone follows significant reforms aimed at revitalizing the country’s struggling sugar sector. 

Speaking during a public address, President Ruto stated that Mumias Sugar Company had been placed under new management to ensure timely payments to farmers and employees, as well as the introduction of bonuses similar to those provided to farmers in other sectors like tea. 

“The leasing programme is going to give us the resources to pay our hard-working farmers a bonus for their supply of cane to Mumias factory,” the President said. 

Mumias Sugar resumed full operations a year ago after a series of legal battles involving the leasing of the mill.  

Jaswant Singh Rai, Chairman of West Kenya Sugar Company, had filed court cases opposing the lease of Mumias Sugar to his brother, Sarbi Singh Rai of Sarrai Group. The cases stalled operations at the factory until President Ruto intervened, resulting in the withdrawal of all pending litigation. 

The President praised sugar farmers for their role in boosting local production, noting that Kenya has now reduced its reliance on imported sugar.  

“As a result, we do not have to use our foreign exchange to import sugar to Kenya,” he remarked. 

President Ruto also addressed challenges at Nzoia Sugar Company, promising reforms once legal disputes are resolved.  

“Farmers are waiting to see how we will change the management of our factories. Once the case is over, I will ensure that we reform Nzoia to enable its farmers to receive bonuses and prompt payments, just like at Mumias,” he added. 

However, tensions have emerged among stakeholders in the sugar industry over decisions by the Kenya Sugar Board.  

Farmers and local leaders have protested the board’s decision to allow Mumias Sugar to continue operations while enforcing closures for two other millers in the Lower Western region. 

The controversy stems from a December 16, 2024, directive by the Kenya Sugar Board, which ordered all millers in the region—Mumias Sugar (2021), Olepito Sugar, and Busia Sugar Industries—to cease milling for one month due to a shortage of mature sugarcane

Millers were to resume operations only after a joint verification of sugarcane acreage and age. 

Despite this resolution, the Sugar Board permitted Mumias Sugar to harvest and mill cane on the very day closures were set to take effect, leaving Olepito and Busia Sugar closed.  

This decision sparked outrage among stakeholders, who accused the board of bias and warned that it could destabilize the sector in Busia County. 

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