Sugar millers petition government to halt duty-free imports  

KENYA – Kenya’s sugar millers have called on the government to halt duty-free sugar imports and take measures to stabilize local prices, citing an ongoing sugar crisis and financial strain on local producers.  

The Kenya Sugar Manufacturers Association (KSMA) has petitioned the Treasury Principal Secretary, urging the implementation of stringent measures to curb illegal sugar imports which they claim are exacerbating the crisis. 

Stephen Ligawa, the newly elected KSMA CEO, expressed frustration over the government’s failure to act despite prior assurances.  

At a meeting with the Agriculture PS in May, millers and farmers were promised that the government would address the import issue and stabilize sugar prices.  

However, Ligawa noted that the situation has only worsened, leading to significant financial losses for millers.  

“The average cost of production per tonne of sugar is currently higher, resulting in losses of between KES18,000 (US$138.23) and KES20,000 (US$153.59) for every tonne produced over the past three months,” he explained. 

In November 2023, the Common Market for Eastern and Southern Africa (COMESA) granted Kenya a two-year extension to regulate the import of cheap sugar.  

Kenya is permitted to import up to 350,000 tonnes of sugar from the COMESA region to address local deficits. This safeguard has been crucial for Kenya’s sugar industry since 2002, aimed at protecting it from cheap imports. 

Meanwhile, the Agriculture and Food Authority (AFA) has announced a reduction in sugar cane prices for August.  

Millers are now required to pay farmers KES4,950 (US$38.01) per tonne, down from KES5,125 (US$39.36). This reduction has been met with criticism from the Kenya Sugarcane Growers Association, which argues that it undermines the progress achieved through sector reforms initiated by President William Ruto.  

Richard Ogendo, the association’s secretary general, pointed out that cane prices were KES6,100 (US$46.84) per tonne when the President introduced the reforms.  

He attributed the price drop to the influx of imported sugar, suggesting it reflects a lack of market research and policy alignment. 

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