Kenya sugar stakeholders oppose Crops Laws Amendment Bill financing changes

Sugar industry stakeholders and farmers have expressed concerns regarding the Crops Laws Amendment Bill, 2026, specifically regarding changes to sector management and financing. During a session in Machakos County, stakeholders presented views to the National Assembly’s Departmental Committee on Agriculture and Livestock.

The Bill, sponsored by Majority Leader Kimani Ichung’wah, proposes the creation of the Kenya Agribusiness Development Corporation Limited (KADCO). This new entity would merge the Agricultural Finance Corporation (AFC) and the Commodities Fund under the National Treasury to address agricultural financing challenges.

However, representatives from the Kenya Sugar Manufacturers Association (KESMA) have questioned the value of these institutional changes. A primary concern is the proposed transfer of funds from the Sugar Development Levy to KADCO, which stakeholders argue could undermine accountability and disrupt arrangements established under the Sugar Act, 2024. Critics noted that previous legislative shifts, such as the Crops Act of 2013, had already contributed to difficulties in cane development, factory rehabilitation, and farmer support.