By Hope Barbra
A blow to farmers after the government reduced the cane prices by Sh250 in what it termed as striking a balance between the millers and the farmers.
The government revised the minimum sugarcane price from Sh5,750 to Sh5,500 per ton.
Similarly, the cost of a 50kg bag of sugar, which previously retailed at approximately Sh7,000, informed the earlier cane price of Sh5,750 per ton.
Currently, a sharp price fall of a 50kg bag of sugar to between Sh6,000 and Sh6,100 necessitated the review of raw material costs to ensure the industry remains viable.
In a statement, the Kenya Sugar Board said the move followed extensive consultations aimed at balancing farmer earnings, miller sustainability and prevailing market realities as sugar production rises across the country.
“In a directive issued by the Kenya Sugar Board on April 24, 2026, all millers were instructed to immediately implement the new price and ensure prompt payments to farmers,” read the statement.
The statement said the decision was reached after deliberations by the 4th Interim Sugarcane Pricing Committee, which reviewed current market conditions and consulted key industry players.
Sources familiar with the discussions indicated that some millers had pushed for the price to be reduced further to Sh5,000 per ton, arguing that rising production costs and falling sugar prices were squeezing their margins.
“However, after careful consideration, the government settled on Sh5,500 per ton to protect farmers from a steep reduction while still responding to changing market dynamics,” read the statement.
The review comes as Kenya records improved sugar production in 2026, with increased cane availability and higher factory output boosting sugar supply in the market.
The reopening of four previously dormant state-owned sugar factories that were leased to private operators has further increased production, resulting in more sugar being supplied locally.
With higher production, market forces of demand and supply have pushed sugar prices down.
Industry stakeholders note that if the cost of procuring raw materials remains too high while sugar prices continue falling, millers could struggle to sustain operations.
Even after the revision, Kenya still pays farmers significantly better than neighbouring countries.
Farmers in Tanzania earn approximately Sh4,900 per ton, while those in Uganda receive about Sh4,500 per ton.
The comparison reinforces the government’s position that Kenyan farmers are not being exploited but are instead receiving some of the most competitive rates in the region.
The move is part of wider reforms being spearheaded by Agriculture Cabinet Secretary Sen. Mutahi Kagwe to revive the sugar sector, strengthen mill operations and ensure long-term sustainability for both farmers and investors.
Officials say the ultimate goal remains building a stable sugar industry where farmers earn fairly, factories remain operational, and Kenya reduces reliance on sugar imports.
