Kenya sees surge in domestic sugar production, plummeting prices 

KENYA – Kenya’s domestic sugar production experienced a boost in the first half of 2024, reaching 485,802 tonnes by the end of August. 

This increase led to a marked decrease in sugar prices, according to a report by the Agriculture and Food Authority (AFA). 

Despite the overall rise, production saw a decline in April and May. The report attributes this drop to maintenance closures at key mills, including Transmara and Sukari, as well as brief shutdowns at Mumias and West Valley.  

However, production surged in June and July, reaching 75,500 and 84,500 metric tonnes, respectively, following the resumption of operations at these mills. 

Among the top producers, the West Kenya Sugar factory led with 97,260 tonnes, followed by Naitiri with 65,420 tonnes, Kibos with 57,000 tonnes, and Butali with 53,204 tonnes. Transmara, with 38,435 tonnes, was fifth.  

On the lower end, Nzoia Sugar, Chemili, South Nyanza (Sony), Muhoroni, and Mumias produced 11,605, 17,575, 16,610, 11,984, and 24,397 tonnes, respectively. 

Kenya operates 17 sugar factories with a combined crushing capacity of 55,300 tonnes of cane per day.  

AFA’s report highlights that Kenya’s annual sugar consumption is 1.1 million metric tonnes, with 950,000 metric tonnes used for household consumption. Monthly consumption averages 80,000 metric tonnes. 

The increased production has led to a decline in sugar prices. Since the resumption of milling in December 2023, prices have fallen from KES9,500 (US$73.65)  per 50kg bag to KES5,128 (US$39.76) . 

Similarly, cane prices have dropped from KES6,050 (US$46.91) per tonne to KES4,950 (US$38.38). AFA notes that this trend has led to requests for sugar exports due to the surplus. 

However, the Kenya Sugarcane Growers Association has criticized the price drop, arguing that it undermines sector reforms initiated by President William Ruto in May 2023.  

Richard Ogendo, the association’s secretary general, attributed the price reductions to an influx of imported sugar and called for thorough market research before allowing further imports. 

The Kenya Sugar Manufacturers Association has petitioned the government to suspend duty-free imports and stabilize local sugar prices to support domestic farmers. 

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