Sugarcane farmers oppose proposed reduction in cane prices
By Aloys Michael, April 26, 2026Sugarcane farmers have raised concerns over a proposed reduction in cane prices, describing the move as harmful to their livelihoods.
In a press briefing in Kisumu on Saturday, April 25, 2026, Kenya Sugarcane Growers Association (KESGA) Secretary General Richard Ogendo claimed millers are planning to lower the price of sugarcane from Ksh5,750 per tonne to Ksh4,800, a move he described as unjustified.
“We are currently being paid Ksh5,750, and there are plans to reduce it to Ksh4,800. In our view, this is not warranted,” Ogendo said.
He argued that millers have enjoyed significant profits over the past two years, running into billions of shillings, yet farmers continue to struggle.
According to Ogendo, the companies have not invested sufficiently in local communities despite operating in those areas.
He claimed they do not build roads, do not support social amenities, and contribute very little to local economies apart from offering employment
Ogendo warned that the proposed price cut undermines the government’s bottom-up economic agenda, which seeks to uplift ordinary Kenyans.
“We cannot allow people to make profits at the expense of farmers. This goes against the spirit of improving livelihoods,” he added.
The farmers now plan to petition Parliament next week with a signature collection exercise already underway.
Among their key demands is the inclusion of by-products such as molasses as part of farmers’ shareable profits.
They argue that millers use molasses to generate electricity and support industrial operations, yet farmers do not benefit from these additional revenue streams.
“In a nutshell, we are asking the president to intervene because his agenda is being derailed,” Ogendo said.
His sentiments were echoed by Michael Arum, coordinator of the Sugar Campaign for Change (SUCAM), who faulted the lack of consultation in the proposed price adjustments.
“Farmers were not consulted. The cost of producing a tonne of sugarcane is already high, leaving very little or no profit under the current pricing,” Arum said.
He noted that reducing prices further would push farmers deeper into losses, especially at a time when sugar prices in the market remain high.
“It is not possible for farmers to absorb further reductions when production costs remain high, and market prices for sugar have not dropped,” he added.
Arum also said some millers are engaging in sugar importation, which he said floods the market and creates artificial pressure to suppress cane prices.
The leaders warned that if their concerns are not addressed, they may call on consumers to boycott sugar purchases in solidarity with farmers.
Uproar over sugarcane prices
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.”
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 Ksh5,750 to Ksh5,500 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.”