Kenya’s Muwariziki Sugar Millers to build US$11.52M sugar factory in Homabay

KENYA – Muwariziki Sugar Millers Limited has unveiled plans to construct a Kes1.5 billion (US$11.52 million) sugar factory in Rangwe Sub-County, Homabay County.  

The project aims to enhance sugar production in Kenya, reducing the country’s reliance on imports while bolstering economic growth in the region. 

The proposed facility, detailed in an Environmental and Social Impact Assessment (ESIA) report submitted to the National Environmental Management Authority (NEMA), will include a 1250 TCD sugar mill, expandable to 1500 TCD, a 20 KLPD ethanol distillery, and a 3 MW captive power cogeneration plant.  

The factory will produce mill brown sugar, ethanol, bagasse, and molasses, with additional by-products such as filter mud and boiler ash. 

Bagasse will be utilized to power the cogeneration plant and ethanol distillery, with surplus potentially allocated for paper or chipboard production, creating opportunities for further industrial development.  

The factory will primarily source sugarcane from outgrowers within a 15 km radius of Rangwe. 

This initiative aligns with government efforts to revitalize Kenya’s sugar sector, which has faced challenges such as high operational costs and closures of key factories.  

Recent reforms, including the Sugar Bill of 2019 and the revival of the Sugar Development Levy, have been introduced to support the sector. The Levy is expected to enhance cane development and research, essential for the industry’s sustainable growth. 

The Kenyan government has also undertaken significant measures to boost the sugar industry. These include the allocation of Kes 600 million to the Kenya Sugar Research and Training Institute (KESRETI) for developing superior cane varieties and the debt write-off of Kes 67 billion (US$518.4 million) for five state-owned sugar companies. 

Recent statistics from the Kenya National Bureau of Statistics (KNBS) indicate progress in reducing Kenya’s reliance on sugar imports.  

In the third quarter of 2024, sugar imports dropped by 45%, from 162,189.1 tonnes in 2023 to 88,372 tonnes.  

This decline has positively impacted foreign exchange reserves, with sugar import expenditures falling from Kes15.16 billion (US$117.1 million) in 2023 to Kes7.89 billion (US$60.9 million) in 2024. 

The establishment of Muwariziki’s factory, combined with ongoing reforms, is expected to enhance Kenya’s domestic sugar production capacity and contribute to the sector’s long-term sustainability. 

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