Kenya sugar industry faces massive losses and decline

The sugar industry in Kenya is facing a severe decline, with sugarcane farmers incurring Sh46 billion in losses between 2014 and 2024. A report by the Senate Agriculture Committee highlighted a 27.2 per cent decline in the sub-sector last year.

Key challenges contributing to this downturn include unpredictable weather patterns such as droughts and floods, obsolete machinery in government-owned mills, and high operational costs for inputs like fertilizer and fuel. Additionally, farmers are struggling with long payment delays and unfair competition from cheap imports.

Financial instability extends to the workforce, with government-owned sugar factories owing Sh8.98 billion in salaries, pensions, and other benefits. While the Sugar Act 2024 introduced reforms regarding pricing and import regulations, implementation remains inconsistent.