The Kenyan sugar sector plays a crucial role in the country’s economy, contributing to food security, employment creation, regional development, and the livelihoods of over 8 million Kenyans. It is also a significant source of income for more than 300,000 small-scale farmers who supply over 90% of the cane processed in local mills. However, the sector faces challenges such as low productivity, cane shortages, and increased sugar imports. In 2023, local sugar production recorded a significant decline to 472,773 MT from 796,554 MT in 2022, largely due to cane shortages and mill closures. The BETA Agenda on Agriculture emphasizes the need to enhance sugar production to promote food security, reduce sugar imports, and grow the export market.
To address these challenges and achieve a 20% reduction in sugar imports by the end of 2024, Kenya has outlined several strategies for the 2024/2025 financial year. These strategies aim to increase sugarcane production, improve industry efficiency, and promote enterprise diversification.
1. Increase Acreage Under Certified Seed Cane
One of the key strategies is to increase the acreage under certified seed cane material. Certified seed cane is crucial for improving sugarcane productivity and reducing reliance on imported sugar. The Kenya Agricultural and Livestock Research Organization (KALRO) and the Sugar Research Institute (SRI) are tasked with providing certified seed cane material and improved varieties. The goal is to supply 239,549 MT of certified seed cane to over 300,000 farmers across 15 sugarcane-growing counties. Additionally, the State Department of Agriculture will provide subsidized fertilizer for planting 4,965 hectares of seed cane, further supporting the increase in sugarcane production.
2. Prioritize Sugar Value Chain in Agricultural Development
To enhance the focus on sugarcane production, the government plans to lobby the 15 sugarcane-growing county governments engaged in the National Agricultural Value Chain Development Project (NAVCDP) to prioritize the sugar value chain. As part of this effort, at least 4,500 agri-preneurs will be sensitized on sugarcane husbandry practices. This initiative aims to improve crop management, increase yields, and ultimately boost sugar production in the country.
3. Develop a Farmer Data Portal
To streamline decision-making and extension services, the Ministry of Agriculture will develop a one-stop portal or database containing detailed information about all sugarcane farmers, including the hectares under cultivation and potential harvest dates. This portal will enable better extension services, helping farmers adopt best practices and make informed decisions. It will also allow the government to make data-driven decisions to support the sugar sector.
4. Revitalize the Sugar Industry through Public-Private Partnerships
Another critical strategy is the revitalization of the sugar industry through the leasing of five public sugar companies. The government aims to attract private investors to enhance the efficiency of these mills and maximize diversification into cogeneration, bioethanol production, and allied co-products. By leveraging public-private partnerships, the industry can increase its capacity and contribute to the overall growth of the sugar sector.
5. Capacity Building and Enterprise Diversification
Capacity building is essential for the long-term sustainability of the sugar industry. The Agriculture and Food Authority (AFA) will lead the training of 450 Ward Agriculture Officers as Trainers of Trainers (ToTs). These officers will, in turn, train 4,500 agri-preneurs on sugarcane crop husbandry, ensuring that farmers have the necessary skills and knowledge to improve their yields.
In addition to capacity building, the Ministry of Trade will conduct workshops targeting 60 agri-entrepreneurs in each of the 15 counties to promote enterprise diversification. These workshops will focus on the utilization of sugarcane by-products, such as briquette making, cardboard production, and the use of bagasse. The State Department of Micro and Small Enterprises (MSEMs) will also sensitize 4,500 entrepreneurs on establishing various industries, including local juice making and white sugar production.
6. Revamping Sugar Cooperative Societies
Finally, the State Department of Cooperatives will work to revamp 450 Ward-Based Sugar Cooperative Societies in the 15 sugarcane-growing counties. Strengthening these cooperatives will enhance the collective bargaining power of farmers, improve access to markets, and support the overall growth of the sugar sector.
By implementing these strategies, Kenya aims to boost sugarcane production, reduce sugar imports, and promote sustainable growth in the sugar industry. These efforts are expected to improve the livelihoods of small-scale farmers and contribute to the country’s food security and economic development.
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