Mbadi: Govt reforms have boosted local sugar production
By David Nthua, July 2, 2026Treasury Cabinet Secretary John Mbadi has said government reforms in the sugar sector have started bearing fruit, pointing to increased local production.
Mbadi spoke to a local TV station on Wednesday, July 1, 2026, and said that reforms targeting the sugar industry had improved production.
He also said the reforms should now be supported by policies that make locally produced sugar cheaper for consumers while protecting farmers and millers from cheaper imports.
Mbadi on sugar production
“The efforts and reforms that we are putting into the sugar industry have led to an increase in sugar production.
We therefore need to encourage more sugar production by making our sugar cheaper and not allowing cheap sugar to flood our market,” Mbadi said.
His remarks come as the government continues to defend its economic record amid pressure from Kenyans over the cost of living, taxation, public debt and household incomes.
Mbadi said the government is seeking to grow local sugar production while ensuring that imported sugar does not undermine domestic producers.
The sugar sector remains a key economic pillar in western Kenya, where thousands of farmers depend on cane farming for income.
For years, the industry has faced delayed farmer payments, ageing factories, weak regulation, high production costs and competition from imported sugar.
The Treasury CS said protecting the local market should go hand in hand with making sugar affordable to Kenyans.
His position places the government on a delicate policy line: supporting local farmers and millers while also ensuring consumers are not punished with high shelf prices.
Small businesses
Mbadi also cited government programmes targeting small businesses, saying the administration has rolled out several initiatives meant to support entrepreneurs and expand access to affordable credit.
“There are a lot of initiatives that this government has come up with to support small businesses, like the Nyota Program, the Hustler Fund, and affordable bank loans,” he said.
The government has consistently presented small business financing as a core part of its bottom-up economic agenda, arguing that cheaper credit can help micro and small enterprises access working capital, create jobs and expand income opportunities.
Critics, however, continue to question whether these programmes have delivered enough impact to cushion ordinary households from inflation, taxes and slow job creation.
Finance Act
Mbadi also defended sections of the Finance Act 2026, saying some of the reforms were designed to lower the cost of healthcare and protect pension income.
“Among the reforms and benefits that have come with this new Finance Act 2026, we have decided to remove taxes on dialysis and dialysis machines to make treatment more affordable. We have also removed taxes on pensions,” Mbadi said.
The CS presented the measures as part of the government’s broader effort to reduce pressure on vulnerable Kenyans, especially patients requiring regular dialysis and pensioners relying on retirement income.
The Finance Act 2026 has remained politically sensitive, with government allies describing it as reform-driven while opponents continue to frame it as part of a wider tax burden on Kenyans.