Govt increases sugarcane prices to Ksh5,500 per tonne
By Nancy Marende, May 23, 2025The government has increased sugarcane prices by Ksh200 to Ksh5,500 per tonne effective May 26, 2025.
In a statement on X on Friday, May 23, 2025, the Ministry of Agriculture and Livestock Development revealed that the increase from Ksh5,300 follows a decision by the Kenya Sugar Board.
“The revised rate was approved by the Cane Pricing Committee and will take effect from May 26, 2025. This price adjustment is part of broader ongoing reforms aimed at strengthening the sugar industry and ensuring fair compensation for farmers,” read the statement in part.
In a directive issued on May 22, 2025, to all 15 licensed millers, including the recently government-owned factories, the State Department of Agriculture Principal Secretary (PS) Paul Ronoh emphasised the need to adhere to the new minimum price.
Further, he instructed all millers to make timely payments to farmers, reinforcing the government’s commitment to safeguarding farmer welfare and improving livelihoods in sugarcane-growing regions.
This comes after Agriculture and Livestock Development Cabinet Secretary (CS) Mutahi Kagwe announced that the government had completed the leasing process of four public sugar factories to revive the once-thriving sugar sector in the country.
Leasing of sugar companies
In a statement on May 9, 2025, Kagwe stated that following a broad-based consultation, four private millers have been awarded a 30-year lease for the operation of Nzoia, Chemilil, Sony, and Muhoroni Sugar Companies.
“The procurement of the four firms followed broad-based engagement with stakeholders across the sugar sector dating back to the year 2015 when Parliament approved the process,” he said.
He said the leasing of Nzoia Sugar Company has been awarded to West Kenya Sugar Company, while that of Chemelil Sugar Company has been awarded to Kibos Sugar & Allied Industries Limited.
Sony Sugar Company has been awarded to Busia Sugar Industry Ltd., and the leasing of Muhoroni Sugar Company has been awarded to West Valley Sugar Company.
“The four firms were competitively procured by the government through the Ministry of Agriculture and Livestock Development, the Kenya Sugar Board, and other key government players,” he said.
He observed that the decision to lease out the four factories was arrived at after lengthy consultations with key stakeholders across the sugar sector, including farmers, sugar factory workers, unions, Members of Parliament, governors, and approvals by the Cabinet.
The CS said the decision was informed by the need to ensure a return on investment for taxpayers, who have, over the years, bailed out the ailing sugar sector.
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