Kenya’s sugar imports drop as local production surges

Kenya has seen a significant reduction in sugar imports, which fell by 45% in the third quarter of 2024. This decline, caused by an oversupply of sugar in the local market, marks a step toward self-sufficiency in sugar production. According to the Kenya National Bureau of Statistics (KNBS), imports dropped from 162,189 tonnes in the same period in 2023 to 88,372 tonnes this year, reported Eastleighvoice.

The reduced imports have also eased pressure on the country’s foreign exchange reserves. Kenya spent Sh7.89 billion on sugar imports in 2024, a sharp decline from Sh15.16 billion in 2023.

This progress follows a challenging year in 2023 when drought affected local sugar production, and India’s ban on sugar exports added to the problem. To address the shortage, Kenya temporarily allowed duty-free sugar imports.

Adding to the difficulties in 2023, the Agriculture and Food Authority banned the harvesting of immature sugarcane. This policy not only slowed sugar production but also caused the price of molasses, used in ethanol production, to rise, affecting industries like alcohol manufacturing.

As a result, sugar imports doubled in the third quarter of 2023, increasing from 76,170 tonnes in 2022 to 162,189 tonnes. The cost of these imports also rose sharply, from Sh6.09 billion in 2022 to Sh15.16 billion in 2023.

However, better weather and the removal of the harvesting ban in 2024 helped boost sugarcane deliveries to mills, leading to an oversupply and reducing the country’s reliance on imports.

During the 2024 Jamhuri Day celebrations, President William Ruto spoke about the country’s progress in sugar production. He shared that Kenya’s domestic sugar production had, for the first time, exceeded national consumption levels.

“In July alone, we produced 84,000 tonnes of sugar, which is more than double the monthly consumption average of 40,000 tonnes. This is a major milestone as Kenya now produces enough sugar to meet local demand,” President Ruto said.

He attributed the success to initiatives such as subsidised fertiliser for sugarcane farmers, an increase in sugarcane farming by another 500,000 acres, and better management in the sector. The president also introduced a new sugar law that he said would help the industry and turn Kenya into a sugar-exporting nation.

Kenya currently produces 800,000 tonnes of sugar annually, and national demand is about one million tonnes. This would leave a deficit of 200,000 tonnes, which in the past, was filled up by duty-free imports from other countries in COMESA.

LEAVE A REPLY

Please enter your comment!
Please enter your name here