Kenya : State raises sugarcane prices to Sh5,750 per tonne
The government has raised the minimum sugarcane price by Sh250 to Sh5,750 per tonne, effective July 21, 2025. This follows a review by the Interim Sugarcane Pricing Committee, which considered ex-factory sugar prices from April to June. Sugar companies must now pay farmers promptly at the revised rate.
The government has announced a review of sugarcane prices, raising the minimum price per tonne by Sh250.
Farmers will now receive Sh5,750 per tonne, up from the previous rate of Sh5,500, following a review by the Interim Sugarcane Pricing Committee.
According to a letter from the Ministry of Agriculture, the decision was reached during the committee’s second meeting held on July 17, 2025.
The review considered the prevailing market trends, particularly ex-factory sugar prices recorded between April and June this year.
“Having considered the prevailing ex-factory sugar prices over the past three months (April–June 2025), the committee approved an increase in the price of cane from the current Sh5,500 to Sh5,750 per tonne, effective from July 21, 2025,” Agriculture Principal Secretary Kipronoh Ronoh stated.
The directive emphasised the need for sugar companies to promptly pay farmers at the new rate.
“You are hereby requested to adhere to the new minimum cane price while making payments to the farmers on time,” the PS added.
The price adjustment is expected to benefit sugarcane farmers across the country by ensuring they receive better returns for their produce in line with rising sugar market prices.
The sugar sector has faced challenges in recent years, including fluctuating market prices, delayed payments to farmers, and the high cost of production.
Farmers have often called for better pricing mechanisms that reflect market dynamics and production costs.
The Interim Sugarcane Pricing Committee is expected to continue reviewing prices periodically to ensure they remain competitive and fair.
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Source : The Star
