The Kenya government has sanctioned an increase in the sugarcane price from Sh4,950 to Sh5,000 per ton. Noting the current market conditions, spiking sugar prices, production costs, and changing global trade dynamics, the new price takes immediate effect from 22nd August, reports Kenya News Agency.
This announcement was made by Agriculture and Livestock Development Cabinet Secretary (CS) Dr. Andrew Mwihia Karanja in a statement released last evening, following a meeting of the Sugar Cane Prices Committee, which is responsible for setting and reviewing sugarcane prices. Dr. Karanja emphasized that the revised prices would enhance farmers’ incomes.
Sugarcane farming in Kenya was once a buoyant business with local millers and government administration now in a deep-running financial crisis, creating an undue strain on the economy. Schemes had therefore to be put in place by the government. Among these efforts was an initiative by President William Ruto to clear significant debts owed to firms in the sugar industry, therefore, re-establishing the crop as a key crop in the country and drawing investors to private mills.
During this year, the increase in production is due to increased management of cane, increased rainfall, and the distribution of subsidized fertilizers by the government, leading to almost 40% above the previous year’s yield.
Dr Karanja revealed last week during the unveiling of the Agriculture Food Authority Strategic Plan 2023/2027 that Kenya has transitioned from being a net importer of sugar to a net exporter. Preservation Secretary Dr Paul Ronoh confirmed that the sugar sector is now the most aligned in the country, attributing the success to the striking transformation plan led by the reforms at AFA.
According to Dr. Ronoh, Kenya is now producing enough sugar for local consumption as the latest figures stand at 83.5 tons a month against a requirement of 80 tons domestically. “We have a surplus. We can export now, and that has never happened before. Kenya can produce enough sugar for local consumption and can export too,” PS Ronoh reiterated as he emphasized the impact of AFA reforms on revitalizing the sugar sector.
The industry has faced a horde of challenges, including factory closures, resulting from insufficient production and skewed pricing. Last October, President William Ruto had said the State would lease sugar factories to ensure the sector roared back to life. Crops Act No. 16. ( 2013) and Agriculture and Food Act No. 13 (AFA) has seen the long-hauling of similar scenarios in which the government has been implementing strategies in a bid to bring sustainable growth and development to the sugar industry. The policy framework developed under these acts has provided necessary guidelines for the revitalization and fostering of sustainable growth of the sugar industry.
