KENYA – Kenya’s sugar imports dipped to a seven-month low in February 2024, reflecting a significant rise in domestic sugar production.
This comes after factories resumed operations following months of shutdown due to a cane shortage.
Data from the Sugar Directorate shows that sugar imports reached 42,381 tonnes last month, marking the lowest level since July 2023 when the country imported 27,179 tonnes.
The decline in imports is attributed to an increase in local sugar output, the highest since January 2023.
“Total sugar produced (bagged) in February 2024 was 63,075 tonnes, a four percent increase from the 60,680 tonnes recorded in January 2024,” the Sugar Directorate stated.
This surge in domestic production is credited to the government’s decision to lift the five-month ban on sugar imports in December 2023. The ban was implemented to allow cane to mature and meet the processing needs of local factories.
The lifting of the ban proved to be a major win for consumers, as the reopening of sugar mills led to a significant drop in sugar prices over the past three months. This trend is particularly evident when considering the rising cost of imported sugar.
“The weighted ex-factory sugar price for February 2024 further dropped by 6 percent to KES6,708 (US$50.73) from KES7,110 (US$53.77) per 50kg bag the previous month and KES8,019 (US$60.64)/50kg bag in December 2023,” the Directorate reported.
The retail price of sugar also mirrored this downward trajectory. According to the Sugar Directorate, a kilogram of sugar retailed at an average of Sh185 last month, a 5.1 percent decrease compared to Sh195 in January 2024.
In a bid to revitalize the sugar industry, the Kenyan senate has pledged to expedite the passing of the Sugar Bill 2022, a crucial step towards rejuvenating the ailing industry.
The proposed Sugar Bill introduces measures such as a sugar development levy, the reinstatement of the Kenya Sugar Board, the establishment of a Sugar Arbitration Tribunal, and the zoning of sugar catchment areas.
Meanwhile, the Kenyan high court has halted the planned leasing of state-owned sugar millers, a step the government had announced as one of the measures to revive the sector.
Justice Chacha Mwita issued an interim order to freeze the tender, advertised by the Ministry of Agriculture on January 16, after a citizen, Martin Nyongesa Barasa, raised concerns about the lack of public consultation in the decision-making process.
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