President William Ruto presided over a ceremony today, where farmers around Mumias, Kakamega County, were receiving a Ksh150 million bonus for supplying sugarcane to Mumias Sugar Company Limited.
Each cane farmer receiving the bonus based on the quantity supplied since Mumias Sugar Factory roared back to life, President Ruto lauded the first-of-its-kind move as one that would have a tiding effect on the entire sector which recorded highs in production in 2024.
“With a record 832,000 tonnes of sugar produced last year, Kenya is on course to attaining surplus production and commencing regional exports by 2026, turning sugarcane cultivation into a viable and rewarding venture,” the President said, pointing out that the writing off of Ksh117 billion in debts, including the payment of Ksh1.7 billion in farmers’ arrears and Ksh650 million owed to employees, was part of the effort to revive the sector.
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In the government’s plan to increase production, President Ruto announced that his administration is going to distribute more subsidised fertilisers to farmers after he directed the new Ministry of Agriculture Cabinet Secretary, Mutahi Kagwe, to increase the supply from 700,000 bags last year to one million bags this year.
“By 2026, Kenya should be a surplus sugar producer and start exporting to regional markets,” he affirmed.
President Ruto also emphasised the importance of the 2019 Sugar Taskforce and the Sugar Act 2024 in regulating and advancing the sugar industry.
“We have tasked the new Cabinet Secretary for Agriculture, present with us today, to finalise the regulations needed to implement the Sugar Act. This will clarify policies and eliminate cartels,” he said.
He noted that under the new sugar laws, individual farmers could earn significantly more. These laws also regulate bonus payments, which are expected to continue in the years ahead.
“To support this, 50 per cent of the annual rent paid to the bank will be distributed as a bonus to farmers on a pro-rata basis, depending on the quantity of sugarcane each farmer supplies to the miller,” President Ruto explained.
He said it was encouraging that farmers who supply cane to Mumias Sugar Company are being paid within seven days.
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