Agriculture and Livestock Development Cabinet Secretary (CS) Mutahi Kagwe has launched the annual Ksh4 billion National Sugar Sector Support Plan.

According to Kagwe, the investment plan funded through the Sugar Development Levy (SDL) is intended to support sustainable growth across the entire sugar industry.

Speaking during a tour of West Kenya Sugar Company in Kakamega on  Monday, June 16, 2025, Kagwe stated that 40% of the SDL, nearly Ksh2 billion, will go towards cane development programmes across the country.

Further, he stated that 15% (Ksh600 million) will go towards roads rehabilitation in sugarcane-growing regions, 15% (Ksh600 million)  towards research and innovation for improved industry productivity, 15% (Ksh600 million)  towards factory rehabilitation across the sector, 5% (Ksh200 million)  towards strengthening farmer associations and 10%  towards administrative operations under the Sugar Board.

“These investments are designed to secure the long-term sustainability of the sugar industry,” CS Kagwe said.

Further, he noted that the allocations follow extensive consultations and concerns raised by farmers’ unions and miller representatives.

He urged Kenyans to support investors who have committed significant capital to the sector, pointing to companies like West Kenya that are helping turn around struggling institutions.

 “We must shift from being net importers to exporters of sugar by 2026,” he said

To address the growing concern of cane poaching, CS Kagwe called on farmers to remain loyal to mills that support them through development programs.

 He also directed the Sugar Board to convene a meeting to establish and enforce clear zonal boundaries among millers to reduce conflict.

He further advised farmers to allow cane to fully mature before harvesting to improve sugar quality and boost Kenya’s competitiveness in the global market once exports commence.

West Kenya Sugar

The CS commended West Kenya Sugar for its strong farmer-centred policies, including weekly payments to over 120,000 contracted farmers and consistent monthly wages for staff. 

West Kenya Sugar Company, owned by the Rai Group, has become the operator of Nzoia Sugar under a lease agreement, a move the government hopes will help revive the state-owned mill and bring stability to the sector.

The company disburses over Ksh14 billion annually in farmer payments and invests an additional Ksh7 billion annually in cane development initiatives.

CS Kagwe also toured Butali Sugar Mills, another key private miller in Kakamega County, as part of his broader assessment of private sector participation in sugar sector reforms.