The Ministry of Agriculture has announced an increase in sugarcane prices, offering a significant boost to farmers. Effective immediately, millers will pay Ksh 5,300 per tonne, up from the previous Ksh 5,000 per tonne. The new price adjustment comes as part of the government’s ongoing efforts to support the sugar industry and improve the livelihoods of farmers.
In a letter addressed to 15 licensed sugarcane millers, the State Department for Agriculture, led by Dr. Paul Ronoh, directed immediate adherence to the revised pricing. “You are hereby requested to adhere to the new minimum cane price while making payments to the farmers on time,” stated Dr. Ronoh. The adjustment was set by the 4th Interim Sugarcane Pricing Committee, which was appointed by the Ministry of Agriculture and Livestock Development on January 9, 2025. The committee reached its decision during its first meeting on February 7, 2025, concluding a 6% increase in the farm gate price.
This move aligns with the government’s broader reforms aimed at revitalizing the sugar sector. The directive affects major sugar millers, including Kibos Sugar, Nzoia Sugar Company, Chemelil Sugar Company, Butali Sugar Mills, Transmara Sugar Company, West Kenya Sugar Company, Muhoroni Sugar Company, South Nyanza Sugar Company, Mumias Sugar Company, Kwale International Sugar Company, Sukari Industries, Busia Sugar Industry, West Kenya Olepito Unit, West Kenya Naitiri Unit, and West Valley Sugar Company.
Last month, President William Ruto reinforced his commitment to the sugar industry by announcing a Ksh 150 million bonus payment for farmers supplying sugarcane to Mumias Sugar Factory. The president also highlighted Kenya’s record production of 832,000 tonnes of sugar in 2024, expressing optimism that the country is on track to achieving surplus production and exporting sugar regionally by 2026.
Additionally, the government is set to increase the supply of subsidized fertilizer for sugarcane farmers. The allocation will rise from 700,000 bags in 2024 to one million bags this year, further reducing input costs and improving yields.
The sugarcane price hike, coupled with increased government support, marks a positive shift for farmers, ensuring better earnings and sustained growth in the sector. As the country moves towards self-sufficiency and export potential, these reforms pave the way for a more stable and profitable sugar industry.