The government has reduced the minimum price of sugarcane to Sh 5,500 per tonne, following a fresh review meant to balance what farmers earn with the cost pressures facing sugar millers as market conditions shift across the country.
In a notice issued on April 24, 2026, by the Kenya Sugar Board and circulated to all millers, the new rate is to take effect immediately, with all processors directed to comply without delay and ensure farmers are paid on time.
The directive follows discussions by the 4th Interim Sugarcane Pricing Committee, which was set up by the Cabinet Secretary for Agriculture and Livestock Development through a letter dated January 9, 2025. The committee held its 5th virtual meeting on April 24, 2026, and an earlier physical meeting on April 17, 2026, where sugar pricing was a key agenda.
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Acting Kenya Sugar Board CEO Jude Chesire said the review came after wide consultations with industry players, leading to a revised minimum price aimed at reflecting current market realities while still protecting farmers.
“The new price of sugarcane is Sh 5,500 per tonne,” the notice stated, adding that it takes effect immediately.
The board further noted, “This new price is comparatively high in the region.”
The adjustment comes after some millers reportedly pushed for a lower rate of Sh 5,000 per tonne, arguing that production costs have gone up while sugar prices have continued to drop in the market.
However, the committee settled on Sh 5,500 per tonne as a middle ground, aiming to prevent heavy losses for farmers while allowing factories to remain operational.
The review has been influenced by changes in the sugar sector, where production has increased in 2026 due to improved cane supply and higher factory output.
The situation has been boosted further by the reopening and leasing of four state-owned sugar factories that had previously been inactive, increasing overall sugar production in the country.
With more sugar entering the market, prices have declined, with a 50kg bag now selling between Sh 6,000 and Sh 6,100, down from about Sh 7,000 previously. This drop has forced a reassessment of cane pricing to avoid squeezing millers too much.
Industry players have warned that if raw material costs remain high while sugar prices continue falling, some factories may struggle to stay in operation.
Even after the reduction, Kenyan farmers are still earning more compared to their regional counterparts. In Tanzania, farmers receive about Sh 4,900 per tonne, while those in Uganda earn around Sh 4,500 per tonne.
Officials say the new pricing is part of broader efforts to stabilize the sugar industry, ensure mills remain productive, and protect farmers from sharp income losses.
The Kenya Sugar Board has urged all millers to strictly follow the new minimum price and ensure timely payments to farmers as part of ongoing reforms in the sector.
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