The government has denied claims that bonuses given to sugarcane farmers from Mumia Sugar Company were from state coffers, as claimed by a section of Kenyans.

In a statement on Friday, January 24, 2025, Government Spokesperson Isaac Mwaura said the company decided to award bonuses to farmers after reaping profits in recent history.

“The Ksh150 million sugarcane bonus awarded to farmers came directly from Mumias Sugar Company and not from state coffers. The company is thriving once again, with farmers having received their sugar bonus for the first time in recent history,” the statement read in part.

Mwaura says sugar reforms by the government, which saw Ksh40 billion debt by sugar companies written off by government, have turned around things for the sugar industry which until recently has relied on imports to satisfy local demand.

“This is a turning point for them, with the government having fulfilled the promise of pesa mfukoni. Sugar reforms wrote off Ksh117 billion debt accumulated in 40 years. The reforms have revived factories back to profitability hence pushing direct benefits to the farmers,” the statement added.

Speaking while launching the sugarcane bonuses, President William Ruto hailed Kenya’s current trend in sugar production, saying it will soon be sufficient to satisfy domestic demand. Ruto said the country will produce enough sugar even for export by 2026.

“The historic issuance of bonuses to Mumias Sugar Company farmers not only validates the success of our reforms but also amplifies the sugar sector’s potential to uplift farmers and support thousands of livelihoods in our country,” Ruto stated.

“With a record 832,000 tonnes of sugar produced last year, Kenya is on course to attaining surplus production and commence regional exports by 2026 — turning sugarcane cultivation into a viable and rewarding venture.”

According to the US Department of Agriculture, Kenya’s sugar production is expected to increase 40 percent in marketing year 2024/25 to 750,000 metric tons due to an increase in area harvested after the expiration of a ban on sugarcane harvesting issued by Kenya’s Agriculture and Food Authority (AFA).

The department anticipates that sugar imports will decline 30 per cent to 455,000 tons during the year as increased domestic production accounts for more of Kenya’s sugar supply.