Kenya looks to Uganda to fill sugar gap after western mills halt production
Kenya’s cane shortage has sharply boosted sugar imports from Uganda and Tanzania, with import costs surging over 700% by September 2025. Mill shutdowns, weather disruptions, and premature harvesting reversed earlier self-sufficiency gains, benefiting regional exporters as Kenyan consumers face higher prices.
Nairobi, Kenya — A domestic production crisis in Kenya has handed a significant windfall to Ugandan sugar millers, as a biting cane shortage forces Nairobi to look across its borders to secure regional supplies.
Fresh data reveals that Kenya’s sugar import bill from Uganda and Tanzania surged by more than 700 percent to 170.1 billion shillings in the three months to September 2025. The spike highlights a growing reliance on the East African Community (EAC) trade bloc to stabilize volatile food prices.
The supply crunch was triggered by a directive from the Kenya Sugar Board (KSB), which ordered seven major factories in western Kenya to suspend milling operations. The intervention was designed to allow sugarcane crops to reach maturity following what officials described as a severe shortage of harvestable cane.
According to figures from the Kenya National Bureau of Statistics, Uganda remains the primary beneficiary of the shortfall. Orders for Ugandan sugar climbed nearly fivefold during the quarter, reaching 4.36 billion shillings.
Analysts suggest the shift underscores the fragility of Kenya’s agricultural recovery. Only a year ago, President William Ruto declared the country self-sufficient in sugar production, attributing a rare surplus to government subsidies and improved sector management.
“For the first time in recent history, Kenya is producing enough sugar to meet local demand,” Dr Ruto said during a November 2024 address.
However, that progress has been undermined by erratic weather patterns and the premature harvesting of young crops, which depleted the local stock. While Kenyan consumers grapple with elevated shelf prices, Ugandan exporters have moved rapidly to fill the vacuum.
Tanzania also emerged as a significant player in the crisis. Previously a negligible exporter to the Kenyan market, Tanzania saw its trade volume skyrocket by nearly 19,000 percent over the same period.
The current situation has reignited debate over the long-term sustainability of the regional sugar trade and whether Kenyan millers can regain their footing before neighboring competitors cement their dominance in the domestic market.
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Source : PML Daily
