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The sugar industry, once a cornerstone of the national economy, has been in decline for years, leaving smallholder farmers grappling with financial uncertainty.

However, the introduction of the Sugar Act 2024 marks a pivotal moment in efforts to rejuvenate the sector and address its systemic challenges.

The new legislation, which largely mirrors the repealed Sugar Act of 2001, introduces key reforms aimed at transforming the industry. Among the most significant changes is the reduction of farmer directors on the Sugar Board from seven to five, a move that reflects the growing influence of private millers in a sector that has undergone significant expansion.

According to Michael Arum, a coordinator with the Sugar Campaign for Change (SUCAM), the sector has evolved dramatically since 2001. “Back then, the industry was dominated by only two private mills. Today, there are eleven operational mills, most of them privately owned,” Arum noted. This shift signals a broader trend in the industry, with power increasingly tilting from government control to private sector dominance.

In the early 2000s, the government played a central role in the industry, owning four operational mills and holding a significant stake in Mumias Sugar, which once accounted for nearly half of Kenya’s sugar production. Over time, however, state-run mills have struggled, and the government’s influence has waned. Arum pointed to Mumias Sugar as a case in point: “Once the industry leader, Mumias is now in financial distress. The government is even considering leasing its assets to private investors to revive operations.”

While the growth of private millers has injected much-needed dynamism into the sector, it has also brought new challenges. Stronger oversight is now essential to protect farmers’ interests and maintain fairness in an increasingly competitive environment. Arum expressed concerns about the reduction in farmer representation on the Sugar Board, arguing that this change could marginalize smallholder farmers, who remain the backbone of the industry. “The reduction in farmer representatives raises serious concerns about the diminishing influence of smallholder farmers in key decision-making processes,” he said.

Arum stressed the importance of ensuring that smallholder farmers are not sidelined as private millers gain more power. “Farmers are the lifeblood of this industry. Without their active participation in the Sugar Board, we risk creating an industry that benefits a few large millers while leaving the majority of smallholder farmers behind,” he warned. SUCAM and other farmer advocacy groups have called on the government to safeguard farmers’ interests and ensure they have a voice in decisions that affect their livelihoods.

One of the most pressing needs under the new Sugar Act 2024 is the formation of a unified farmer apex body. Arum emphasized that this body would serve as a central platform for smallholder farmers to advocate for their rights and interests at the national level. “We need a strong, unified front to push for fair pricing, better working conditions, and greater support from both the government and private millers,” he said. He also pointed out that a fragmented farmer community has long been a barrier to achieving fair representation, leaving smallholder farmers vulnerable to divide-and-rule tactics by some private millers.

The establishment of this apex body is seen as a critical step toward strengthening farmers’ collective voice and ensuring their concerns are addressed. “With a unified front, farmers will be in a better position to negotiate and advocate for policies that support their needs,” Arum said.

While the Sugar Act 2024 is an important milestone, its success will hinge on effective implementation and sustained government oversight. Arum urged the government to remain vigilant in ensuring that the benefits of the sugar industry are equitably shared. “The reforms are a step in the right direction, but they must be accompanied by strong oversight mechanisms to prevent exploitation and ensure fairness,” he said.

Looking ahead, the future of Kenya’s sugar industry holds promise if the interests of smallholder farmers remain a priority. Sugar Board CEO Jude Chesire has also emphasized the need for an inclusive and competitive environment to drive sustainable growth. By fostering policies that protect farmers and promoting equitable practices, Kenya’s sugar sector can reclaim its position as a vital contributor to the national economy, offering prosperity and stability for all stakeholders.