Government freezes issuance of new sugar import licences

Ronald Owili
3 Min Read
PHOTO | BBC

Agriculture Cabinet Secretary Mutahi Kagwe has directed the Kenya Sugar Board to stop issuing new sugar import licences on account of sufficient local production.

Accoridng to Kagwe, Kenya currently has enough stock of sugar to meet domestic demand without disrupting the local market.

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“I have asked the Kenya Sugar Board to stop sugar imports. Henceforth, I do not want any license issued for sugar imports. As at now, what we have produced is sufficient for the first time. We are going to ensure we do not mess up the internal market because of imports. We are not going to import sugar at the risk of the local industry,” said Kagwe.

Data by the ministry indicate that sugar imports have declined from an estimated 210,000 metric tonnes last year to about 60,000 metric tonnes so far this year.

The reduction is attributed to the Ksh 40 per kilogram excise duty introduced under the Finance Act, 2026, which has discouraged imports while safeguarding local producers.

Kagwe said the government’s priority is now to protect local production as Kenya prepares to transition from a sugar-importing country to a sugar-exporting nation.

He also announced stricter licensing requirements for new sugar factories to address rampant cane poaching, saying investors seeking milling licences must demonstrate adequate nucleus estates and contracted outgrowers before approval.

“Before we licence a factory, we must know where the nucleus farm is and where the outgrowers are,” he added.

Kagwe said the government remains committed to clearing pending historic arrears sugarcane farmers across the country are owed. Out of nearly Ksh 2 billion owed by government, only about Ksh 265 million remains unpaid.

“My happiest day will be when Government owes sugar farmers absolutely nothing,” he noted.

This comes as the Kenya Sugar Board Grower Directors Election Committee announces date for electing of new officials representing industry stakeholders.

“The powers have been vested in my office to declare these elections. I therefore officially announce that the elections for the five grower directors representing the five sugar-growing regions will be held on Saturday, September 5, 2026. We shall work with all stakeholders to ensure the elections are conducted in accordance with the provisions of the law,” Khator said.

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