A lobby group has raised fresh alarm over claims that thousands of tonnes of industrial sugar meant for processing may have been diverted and sold directly to consumers, exposing gaps in oversight and raising food safety concerns.
In a statement issued on April 24, 2026, the National Integrity Alliance (NIA) pointed to findings from a recent exposé showing that 27,839 metric tonnes of raw industrial cane sugar shipped from Durban, South Africa, and valued at about Sh1.5 billion, was cleared under a customs category reserved for manufacturers.
The Alliance explained that sugar imported under this arrangement attracts a lower duty because it is meant to support production processes and not for direct sale to households.
However, NIA said there are signs that part of the consignment may have been diverted, repackaged, and introduced into retail outlets as ordinary table sugar. It warned that this creates a serious risk since the public cannot easily identify such sugar without proper testing.
"What was uncovered is an ongoing scheme in which raw industrial sugar is imported, repackaged as consumer sugar, and sold to unsuspecting Kenyans. This appears to be a trend in which the listed companies import raw industrial sugar at a discounted industrial duty rate and legally designate it for industrial processing only, just later to divert it for human consumption," the statement read in part.
The organisation said the issue should not be treated as a simple trade violation, arguing that it touches on basic rights, including access to safe food and protection of consumers.
"This opportunistic criminal act was carried out under the authorities' radar. Multiple credible sources indicate the involvement of a well-organised network with connections at senior levels of government," said NIA.
NIA also highlighted long-running challenges in the sugar sector, noting that the country depends on imports due to low local output. While imports help fill the gap, the group said they also open room for misuse, especially where oversight is weak.
The Alliance further raised concern over the state of the Kenya Sugar Board, saying it has been unable to operate effectively after a court order in 2023 left it without a quorum. This, it said, has limited its ability to supervise imports and ensure rules are followed.
Drawing from a similar case in 2023 where condemned sugar reportedly made its way back into circulation, the group criticised regulators for not acting on earlier warnings.
NIA is now urging authorities to launch immediate investigations, hold both government officials and private players to account, strengthen regulatory oversight, and withdraw from the market any sugar linked to the questioned shipment.