The government has maintained restrictions on sugar imports and suspended the issuance of new licences, saying rising local production is now enough to meet domestic demand as it moves to protect farmers and rebuild the sugar industry.
Agriculture and Livestock Development Cabinet Secretary Sen. Mutahi Kagwe announced the measures on Friday during a consultative meeting with sugar farmers, industry stakeholders and Kenya Sugar Board officials.
Kagwe said the government would continue limiting sugar imports as part of wider efforts to support local producers and make the country’s sugar industry more competitive.
"No new sugar import licences be issued, saying local production is now sufficient to meet domestic demand. Sugar imports have declined by over 71%, from about 210,000 metric tonnes last year to about 60,000 metric tonnes this year, partly due to the Sh40 per kilogram excise duty introduced under the Finance Act, 2026, as the Government moves to protect local producers and position Kenya as a sugar-exporting nation," he said.
The sharp drop in imports comes as the government seeks to strengthen local sugar production and reduce reliance on imported sugar. The restrictions are also intended to give local farmers and millers greater room to supply the domestic market.
Kagwe also announced tighter licensing conditions for investors seeking to establish new sugar factories, saying the measures would help address cane poaching and promote a more sustainable industry.
"He announced stricter licensing requirements for new sugar factories to curb cane poaching, requiring investors to demonstrate adequate nucleus estates and contracted outgrowers before licences are issued."
Under the new approach, investors will have to show that they have enough cane-growing capacity and agreements with outgrowers before being allowed to operate new factories.
The government also gave an update on efforts to settle money owed to sugar farmers, with Kagwe saying the historical arrears had been reduced substantially and that efforts were underway to clear the remaining amount.
"Government has reduced historical arrears owed to sugar farmers from nearly Sh2 billion to just Sh265 million, and pledged to clear the remaining balance in consultation with the National Treasury while directing immediate action on delayed payments by millers," he said.
The Cabinet Secretary also confirmed that elections for five regional grower representatives to the Kenya Sugar Board will be held on September 5, 2026.
The elections will allow farmers from the country’s five sugar-growing regions to choose their representatives to the board, which the government says will mark a major step towards fully operationalising the Kenya Sugar Board under the Sugar Act, 2024.
Farmer organisations welcomed the planned elections, saying they would complete the establishment of the board by ensuring growers from the five regions have elected representatives.
During the meeting, stakeholders also called on the government to release the infrastructure component of the Sugar Development Levy and write off more than Sh48 billion owed by former outgrower institutions.
Farmers further called for stability in cane prices, supporting the retention of the current price of Sh5,500 per tonne compared with the previous rate of Sh5,750 per tonne.
The government said it remains committed to reforms focused on transparency, accountability and the creation of a more competitive sugar sector that delivers better returns to farmers.
It also announced that a substantive Chief Executive Officer for the Kenya Sugar Research and Training Institute (KESRETI) will be appointed by the end of the week.