Kenya’s sugar market will remain steady despite a sharp fall in local production, the Kenya Sugar Board has said, moving to calm fears of shortages and rising prices among consumers. The Board insists the drop reflects a planned transition period in the sector rather than a supply crisis, and says firm measures are in place to protect both farmers and buyers.
In a statement issued on Thursday, the Kenya Sugar Board said national sugar output declined from 815,000 metric tonnes in 2024 to 613,000 metric tonnes in 2025. This represents a reduction of about 25 percent, leaving domestic production able to meet roughly 61 percent of the country’s annual demand, which stands at an estimated 1.2 million metric tonnes.
The Board acknowledged that the figures had raised public concern following the release of recent economic data. However, it assured consumers that sugar supplies remain secure and urged the public to continue purchasing with confidence as recovery plans gain momentum.
According to officials, 2025 has been a transition year for the sugar industry. The period has been shaped by factory reforms, weather challenges and planned decisions aimed at protecting future cane supply. They said the decline in production should not be seen as a failure, but as part of a wider effort to reset the sector and build long-term stability.
One of the main factors behind the reduced output was the cane maturity cycle. A large share of fully mature cane was harvested in 2024, pushing production to record levels that year. In 2025, however, much of the available cane had not yet reached maturity.
To safeguard farmer earnings and maintain proper sugar content, seven factories in the Lower and Upper Western regions were temporarily shut down to allow cane to mature fully. The Board said the decision was deliberate and meant to avoid early harvesting, which would have lowered yields and reduced farmer returns over time.
While the closures limited production in the short term, officials said they were necessary to secure stable output in the coming seasons.
Changes at factory level also contributed to the slowdown. Four state-owned mills were closed as part of a leasing programme that handed operations to private investors. These mills underwent major repair and upgrade works valued at Sh12.5 billion, leading to nearly nine months of reduced milling activity.
Kwale Sugar Factory remained closed throughout 2025, adding further pressure on national output during the year.
Weather conditions worsened the situation. Dry conditions that began in the last quarter of 2025 and continued into early 2026 slowed cane growth, reduced yields per hectare and limited factory operations. The Board said the experience had underlined the sector’s exposure to climate stress, but noted that steps were being taken to strengthen response measures.
Despite the fall in production, authorities said demand pressures are under control. Sugar consumption continues to rise due to population growth, urban expansion and increased use by industries. Officials stressed that maintaining stable supply and prices remains a national priority, given sugar’s importance to households and manufacturers.
To protect consumers, the government has activated market control measures designed to prevent artificial shortages, hoarding and sudden price increases. The Kenya Sugar Board said these controls will remain in place as domestic output steadily recovers.
Attention has now shifted to farmer support and future supply. Programmes financed through the Sh1.2 billion Sugar Development Levy are being rolled out to speed up cane growth in 2026. These efforts include expanding cane-growing areas and introducing early-maturing varieties developed by the Sugar Research Institute.
Authorities said millions of tonnes of cane are already planted, with support from millers, and that harvesting and milling are expected to rise sharply from October and November 2026 as renovated factories resume full production.
The Board said that while the 25 percent production drop in 2025 was notable, it should be viewed within the broader reform agenda aimed at strengthening the sector.
“The challenges experienced are temporary, but the reforms underway are permanent,” the statement said, adding that the objective is to create a strong and reliable sugar industry capable of meeting Kenya’s growing demand in the years ahead.
