Government Assures Public Of Stable Sugar Prices Despite Production Dip
Agriculture and Livestock Development CS Mutahi Kagwe with Kenya Sugar Board CEO Jude Chesire and other officials. Photo/Courtesy.
By MKT Correspondent
The Kenya Sugar Board has moved to calm fears of an impending sugar shortage, assuring consumers that supplies remain stable and prices will be kept in check despite a sharp drop in domestic production over the past year.
In a press statement issued yesterday, the Board said recent economic data from the Kenya National Bureau of Statistics had sparked concern about possible price increases, but stressed that there was “no cause for panic” and urged Kenyans to continue buying sugar with confidence.
The regulator, Kenya Sugar Board Chief Executive Officer Jude Chesire said the national sugar production in 2025 fell to 613,000 metric tonnes, meeting only 61 per cent of the country’s estimated annual demand of 1.2 million tonnes.
This represented a significant decline from the 815,000 tonnes produced in 2024, a drop of about 25 per cent.
Mr Chesire attributed the reduced output to a combination of structural reforms, factory rehabilitation and adverse weather conditions rather than a collapse of the sector.
“One of the main factors was the cane maturity profile,” he said, adding, “Much of the mature cane was harvested in 2024, leading to high production that year. In 2025, a large proportion of cane was still in developmental stages and could not be harvested.”
As a result, seven sugar factories in Lower and Upper Western regions were temporarily closed to allow cane to mature fully, a move aimed at protecting future yields and farmers’ incomes. At the same time, four state-owned mills were shut to facilitate leasing to private investors, followed by extensive renovations worth about Sh12.5 billion, leading to roughly nine months of reduced milling capacity. Kwale Sugar also remained non-operational throughout the year.
Dry spells in late 2025 and early 2026 further slowed cane development and reduced factory throughput, adding pressure to an already strained production cycle.
Despite these challenges, Mr Chesire said the government and industry regulators had put in place market stabilisation measures to prevent artificial shortages, curb speculation and keep prices predictable as production recovers.
Farmers, he noted, remain central to the recovery strategy. Programs funded by the Sh1.2 billion Sugar Development Levy are expected to accelerate cane development in 2026 through expansion of cultivation areas and introduction of early-maturing varieties from the Sugar Research Institute.
“Millions of tonnes of cane are already in the ground supported by millers, with harvesting and milling projected to resume strongly from October to November 2026,” Mr Chesire said, describing the current period as a transition year laying the foundation for higher and more reliable output.
Kenya’s sugar demand continues to rise, driven by population growth, urbanisation and increased industrial use. Rebuilding the sector, he added, was essential not only to meet current needs but also to secure supply for future generations.
“The challenges of late 2025 and early 2026 are real, but they are temporary.
The reforms are permanent,” Mr Chesire said, adding that the assurance to consumers was clear: sugar supply will remain stable as the industry completes its recovery.
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