Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe has highlighted the urgent need for Parliament to back comprehensive reforms and adequate funding to rescue Kenya’s sugar industry, which has been grappling with delayed payments, strikes, and structural challenges.
He said that only coordinated interventions can restore efficiency, protect farmers’ interests, and ensure sustainable growth in the sector.
In a statement on the ministry’s official X account on February 20, 2026, Kagwe acknowledged that gaps exist in the Sugar Act and its regulations, echoing concerns previously raised by Parliament’s legal team. He confirmed that amendments are necessary to address the weaknesses undermining the sector.
“The Ministry conducted extensive public participation and will move with speed to introduce the necessary changes,” he said.
Kagwe said the government has engaged widely with stakeholders and is committed to presenting the proposed changes without delay. The reforms are intended to improve governance, ensure transparency, and enhance benefits for farmers and workers alike.
The Cabinet Secretary also addressed the ongoing debate over electing directors in sugar cooperatives, noting that the matter is currently before the courts.
He acknowledged that some have suggested replacing elections with nominations but said that voting remains the best method to empower farmers. He added that any resolution must follow proper legal procedures, particularly regarding zoning and governance issues.
Farmers’ welfare is a central focus of the reforms, Kagwe said, recognizing the long-standing frustrations over delayed benefits and inefficiencies.
He highlighted progress already made, including the implementation of weekly payments to sugarcane growers, a move aimed at improving cash flow for farmers and reinforcing confidence in the sector.
Kagwe also recounted the recent nationwide strike that affected Muhoroni, Nzoia, Sony, and Chemelil factories. The industrial action, which started on January 29, 2026, halted production as workers demanded the payment of Sh10.8 billion in salary arrears and terminal benefits.
Following intensive negotiations led by his office, the strike was suspended after the government committed to release Sh1 billion within two weeks, with the remaining arrears to be settled gradually through supplementary and future budgets.
He urged Parliament to support the sugar industry with sufficient funding, stressing that financial backing is critical for stabilising operations and addressing deep-rooted structural issues.
Kagwe warned against interventions targeting third parties, saying they could delay the sector’s recovery, and clarified that most arrears arose during the transition to private millers, not the current operators.
Union leaders, including Secretary Francis Wangara, welcomed the government’s commitment but noted concerns remain over pending union deductions, which will be discussed in follow-up sessions.
Kagwe apologized for delays caused by fiscal limitations and reaffirmed that ongoing reforms and steady funding are vital to restoring efficiency, supporting farmers, and securing long-term benefits for sugar industry workers.
