BUSINESS

Sugar Board moves to calm fears over rising sugar prices

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Sugar on shelves in a supermarket
Sugar on shelves in a supermarket
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The Kenya Sugar Board (KSB) has told Kenyans not to worry about a sudden rise in sugar prices, despite official statistics showing a sharp drop in local sugar output last year.

In a statement, the Board said the country has sufficient sugar stocks to serve consumers and maintain normal supply, even as the industry continues to recover from production disruptions experienced in 2025 and early 2026.

“Kenya’s sugar supply remains secure. There is no cause for panic buying, and consumers should continue purchasing sugar with confidence,” the Board said.

Official industry figures indicate that sugar production fell to about 613,000 metric tonnes in 2025, compared to 815,000 metric tonnes in 2024. This decline, estimated at 25 per cent, means local production met only about 61 per cent of the country’s annual demand of 1.2 million metric tonnes.

The Board said the reduction was anticipated and linked to major reforms being implemented across the sugar sector. One of the main reasons was the deliberate decision to slow down harvesting in some regions to allow sugarcane to mature fully, following heavy harvesting in 2024 that left much of the 2025 crop still at early growth stages.

Closed sugar factories

Several sugar factories in Western Kenya were temporarily closed to prevent premature harvesting, a move the Board said was meant to safeguard farmers’ earnings by ensuring better cane quality and higher sucrose content.

At the same time, four former government-owned sugar mills were shut down to allow for leasing to private investors. The factories underwent extensive rehabilitation and modernisation works costing about Sh12.5 billion, resulting in reduced milling activity for much of the year. Kwale Sugar Factory did not operate at all in 2025.

Unfavourable weather also played a role, with extended dry conditions in late 2025 and early 2026 affecting cane growth and lowering yields in key sugar-growing areas.

The Board described 2025 as a transition period, saying the temporary decline in output was necessary to lay the groundwork for long-term stability and improved efficiency in the sector.

To protect consumers, the regulator said it has put measures in place to stabilise the market and curb speculative pricing as production gradually improves. Sugar consumption in Kenya continues to rise due to population growth and increased industrial use.

Support for farmers is also expected to increase in 2026, funded through the Sugar Development Levy. The Board said the funds will be used to expand cane farming, promote early-maturing cane varieties developed by the Kenya Sugar Research Institute and improve productivity.

According to the Board, large volumes of cane are already in the ground, and milling activity is expected to pick up from October to November 2026, marking the beginning of a steady recovery in domestic sugar production.

The regulator said the current supply challenges are short-term and expressed confidence that the reforms underway will secure the industry’s future.

“The assurance to Kenyans is clear: sugar supply will remain stable as the industry completes its recovery,” the Board said.

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