Kenya has unveiled an annual Ksh 4B National Sugar Sector Support Plan to support sustainable growth across the entire sugar industry, not just a single player.
The national Ksh 4 billion annual investment plan is funded through the Sugar Development Levy (SDL) and was unveiled by the Agriculture and Livestock Development Cabinet Secretary Hon. Mutahi Kagwe on his West Kenya Sugar Company tour.
West Kenya Sugar, owned by the Rai Group, recently secured a 30-year lease to operate Nzoia Sugar Company to help revive the state-owned mill and bring stability to the sector.
According to the Cabinet Secretary, 40% of the SDL—nearly Ksh 2 billion—will go towards cane development programs across the country. 15% (Ksh 600 million) – Road’s rehabilitation in sugarcane-growing regions, 15% (Ksh 600 million) – Research and innovation for improved industry productivity, 15% (Ksh 600 million) – Factory rehabilitation across the sector, 5% (Ksh 200 million) – Strengthening farmer associations and 10% – Administrative operations under the Sugar Board.
“These investments are designed to secure the long-term sustainability of the sugar industry,” CS Kagwe said. “We must shift from being net importers to exporters of sugar by 2026.”
West Kenya Sugar is known for its strong farmer-centered policies, including weekly payments to over 120,000 contracted farmers and consistent monthly wages for staff. The company disburses over Ksh 14 billion annually in farmer payments and invests an additional Ksh 7 billion annually in cane development initiatives.
As of September 30, 2024, nearly 50% of all land under sugarcane cultivation in Kenya is managed by the Rai Sugar Group, underlining the group’s growing role in the industry’s development.
CS Kagwe also toured Butali Sugar Mills, another key private miller in Kakamega County, as part of his broader assessment of private sector participation in sugar sector reforms.
