By KBC Digital
Kenya’s sugar industry is undergoing one of its most significant transformations in decades, one that has temporarily reduced output but is expected to deliver long-term stability for a growing market.
Production declined to 613,000 metric tonnes in 2025, down from 815,000 metric tonnes in 2024, as the sector entered a reform phase alongside adverse weather conditions.
According to the Kenya Sugar Board, the production dip reflected structural shifts rather than systemic failure.
“The industry chose long-term sustainability over short-term volumes,” said CEO Jude Chesire in a press release.
Seven mills were closed to allow immature cane to reach optimal sucrose levels, while four state-owned mills were leased to private investors who invested Ksh 12.5 billion in rehabilitation.
These moves reduced milling capacity for several months but modernisedinfrastructure critical to future growth.
Dry spells further constrained output, reducing cane yields and factory throughput.
To manage market impact, the government introduced stabilisation measures to ensure availability, predictable pricing, and protection against speculative shortages.
Looking ahead, the recovery strategy places farmers at the centre, supported by Ksh 1.2 billion in levy-funded programmes, expanded acreage, and early-maturing cane varieties.
With millions of tonnes already planted and milling expected to rebound from late 2026, regulators say the sector is positioned for sustained recovery.
“The reforms are permanent,” Chesire said. “The challenges are temporary.”
