The Kenya Sugar Board has announced a downward revision of sugarcane prices, cutting the rate from Ksh5,750 to Ksh5,500 per tonne.

In a notice issued on Saturday, April 25, 2026, following meetings of the Interim Sugarcane Pricing Committee held on April 17 and April 24, 2026, the board confirmed that the new minimum price of Ksh5,500 per tonne takes immediate effect.

The directive, signed by Acting CEO Jude Chesire, instructs all millers to comply with the revised rate and ensure timely payments to farmers.

“The 4th Interim Sugarcane Pricing Committee was appointed by the Cabinet Secretary, Ministry of Agriculture and Livestock Development vide his letter Ref: MOALF/S.11/25a/7/TY/3 dated 9th January 2025,” the notice reads in part.

“We refer to the Fifth and Fourth meetings of the interim sugarcane pricing committee held virtually on 24th April 2026 and physically on 17th April 2026. respectively, and subsequent extensive consultations on Sugarcane Prices. This is therefore to notify you that a new sugarcane price of Ksh. 5,500 per tonne has been approved effective immediately.”

Millers ordered to comply

The decision effectively reverses a previously higher price point of Ksh5,750 per tonne, raising concerns over policy inconsistency and the financial impact on cane growers who had anticipated improved earnings amid rising production costs.

However, the board argues that the new set price is still high as compared to the neighbouring countries in the region.

“This new price is comparatively high in the region. You are hereby requested to adhere to the new minimum cane price while making payments to the farmers on time,” the board stated.

The directive was formally addressed to major millers, including West Kenya Sugar Company, Kibos Sugar and Allied Industries, Butali Sugar Mills, and Mumias Sugar (2021) Limited, among others.

Kenya’s sugar industry has long been plagued by mismanagement, debt-ridden state-owned mills, and periodic policy shifts that disrupt planning. The latest price cut risks reigniting tensions between farmers, millers, and regulators.

Government defends decision

However, the office of the Cabinet Secretary for the Ministry of Agriculture & Livestock Development, Mutahi Kagwe, has said that the government’s decision to revise the minimum sugarcane price from Ksh5,750 to Ksh5,500 per tonne follows consultations to balance farmer earnings, miller sustainability, and current market realities.

According to the ministry, the review followed deliberations by the 4th Interim Sugarcane Pricing Committee, which assessed market conditions as sugar production and cane availability increased across the country.

“The government has revised the minimum sugarcane price from KSh 5,750 to KSh 5,500 per tonne following consultations to balance farmer earnings, miller sustainability, and current market realities. In a directive issued by the Kenya Sugar Board on April 24, 2026, all millers were ordered to implement the new price immediately and ensure prompt farmer payments,” the statement issued via X on Saturday, April 25, 2026, reads in part.

“The review followed deliberations by the 4th Interim Sugarcane Pricing Committee, which assessed market conditions as sugar production and cane availability increased across the country.”

According to Kagwe’s office, some millers had proposed a lower price of Ksh5,000 per tonne, but the government settled on the new price to protect farmers from a sharp reduction while responding to market changes.

“With more sugar in the market, prices have dropped from about KSh 7,000 to between KSh 6,000 and KSh 6,100 per 50kg bag, making the review necessary to keep factories operational and the industry sustainable,” the ministry stated.

“Although some millers proposed a lower price of KSh 5,000 per tonne, the government settled on KSh 5,500 to protect farmers from a sharp reduction while responding to market changes.”