Kenya Bans Sugar Imports from Non-EAC and COMESA Countries Amid Increased Local Production

The Kenyan government has halted all sugar imports from countries outside the East African Community (EAC) and the Common Market for Eastern and Southern Africa (COMESA). This decision, announced by Agriculture and Livestock Cabinet Secretary Dr. Andrew Karanja, comes on the heels of expected higher sugar production within the country this year.

Dr. Karanja explained that with improved local production leading to lower sugar prices, the government did not extend the import window for countries outside COMESA and EAC. “While sugar imports from these regions continue under existing trade protocols, the volumes have been lower due to unattractive low prices,” he stated. The increased local production is seen as a positive development for the country’s agriculture sector, reducing the need for external sugar imports and supporting local farmers.

Kenya had previously allowed sugar imports from non-EAC and COMESA countries last year to address a production shortfall and curb rising prices triggered by a severe drought that affected production within the trade blocs. The import ban has been reintroduced as a measure to curtail illegal imports and protect the local sugar industry. “Additionally, there are challenges with illegal sugar smuggling through porous borders, which security agencies are addressing. Kenya remains committed to adhering to the free trade protocols outlined in existing treaties,” Dr. Karanja added, highlighting the ongoing battle against sugar smuggling, which undermines local production efforts.

The government’s decision to stop imports from outside the trade blocs is part of broader efforts to stabilize the sugar market and support the local industry. Data from the Ministry of Agriculture indicates that Kenya produces an average of 700,000 metric tons of sugar annually from 16 factories. In 2022, production increased to 800,000 metric tons, demonstrating a significant boost in local output. However, production in 2023 was hampered by severe drought conditions, which led to reduced sugar output and prompted the government to temporarily allow imports from outside EAC and COMESA to cover the shortfall.

Despite the temporary measures, the focus remains on enhancing local production capacity and reducing dependency on imports. The average annual consumption of table sugar in Kenya is approximately 950,000 metric tons, with the shortfall typically being met through imports from COMESA and EAC countries under existing trade protocols. These imports are currently facilitated by sugar safeguards that are set to expire in February 2025, providing a timeframe for the local industry to further boost production and achieve self-sufficiency.

The Kenyan government’s decision to limit sugar imports to COMESA and EAC countries aligns with its commitment to regional trade agreements and protocols. The move also aims to protect local producers from competition with cheaper imports that could potentially flood the market. By adhering to the free trade protocols outlined in existing treaties, Kenya is not only supporting its own agricultural sector but also fostering economic cooperation and integration within the region.

The government’s efforts to tackle illegal sugar smuggling are also crucial in maintaining the integrity of the local market. Smuggling has been a persistent issue, exacerbating the challenges faced by local producers and undermining efforts to stabilize the industry. With security agencies ramping up their efforts to address the issue, the government is taking a comprehensive approach to safeguard the interests of local farmers and the broader sugar industry.

As the Kenyan sugar industry continues to recover from the impacts of drought and works towards increasing production, the ban on imports from non-EAC and COMESA countries is a strategic step towards ensuring the sustainability and growth of the sector. The government’s commitment to supporting local production and adhering to regional trade protocols is a positive sign for the future of the Kenyan sugar industry, providing a stable and predictable environment for producers and consumers alike.