KENYA – Mumias Sugar has issued a Kes150 million (US$1.16M) bonus to sugarcane farmers, fulfilling a government promise to revitalize Kenya’s sugar industry.
The announcement was made by President William Ruto during the launch of the bonus payments, signaling progress in efforts to uplift the sector and improve farmers’ livelihoods.
Speaking at the event, President Ruto highlighted the success of ongoing reforms, citing a record 832,000 tonnes of sugar produced last year as evidence of the sector’s recovery.
He emphasized Kenya’s trajectory toward achieving surplus sugar production and regional exports by 2026, positioning sugarcane farming as a profitable venture.
“The bonus payment to farmers validates the reforms introduced in the sugar sector and demonstrates the potential to uplift farmers while supporting tens of thousands of livelihoods,” Ruto stated.
He detailed additional efforts, including the government’s write-off of Kes117 billion (US$903.5M) in debts, payment of Kes1.7 billion (US$13.13M) in farmers’ arrears, and Kes650 million owed to employees. These measures, along with the subsidized fertilizer program, aim to enhance productivity and boost farmer incomes.
The President also announced the enactment of the Sugar Act 2024, which establishes sugarcane catchment areas to better manage supply, streamline milling operations, and improve overall efficiency.
“We have asked the new Cabinet Secretary for Agriculture Mutahi Kagwe, who is here with us today, to finalise regulations to operationalise the Sugar Act to provide clarity and get rid of cartels in the sector,” he said.
The new sugar laws regulate bonus payments, ensuring that individual farmers receive higher earnings. Farmers are now entitled to 50 percent of the annual rent paid to the bank, distributed as bonuses on a pro-rata basis, depending on their sugarcane supply to millers.
Despite these advancements, tensions persist within the industry. Earlier this year, farmers and local leaders protested a Kenya Sugar Board decision permitting Mumias Sugar to continue operations while enforcing closures for two other millers in the Lower Western region.
The controversy arose after a December 16, 2024, directive by the Sugar Board instructed millers, including Mumias Sugar, Olepito Sugar, and Busia Sugar Industries, to cease operations 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.
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