Kenya Sugar Board dismisses claims of imported sugar flooding retail market
Kenya Sugar Board denied claims that imported industrial sugar enters retail markets, stating it is strictly for manufacturing and closely monitored. With no local production of industrial sugar, imports meet demand. The Board is advancing governance reforms, reviewing pricing structures, and ensuring strict oversight to prevent misuse and stabilise the sector.
The Kenya Sugar Board has dismissed concerns that imported industrial sugar is entering the local market for direct consumption, saying the consignments are raw materials meant for manufacturing and are under strict multi-agency monitoring.
The Board clarified that Kenya does not produce industrial sugar locally, noting that the imports are strictly intended for industrial users in the manufacturing sector. It added that the consignments consist of raw sugar not suitable for direct consumption and therefore cannot be released into the retail market.
Officials further explained that industrial sugar is a key input for manufacturing processes and that the country’s annual demand of about 200,000 metric tonnes is currently met through imports.
The Board emphasised that strict monitoring mechanisms have been put in place, including a multi-agency team overseeing consignments stored at the port of Mombasa, to ensure compliance and prevent diversion into unintended channels.
The clarification was made during an oversight engagement with the National Assembly Committee on Agriculture and Livestock at Sukari Plaza in Kabete. The Committee was led by the Chairperson (Dr.) John Mutunga, Member of Parliament for Tigania West, and included Nyando MP Jared Okello and Kisumu County Woman Representative Ruth Odinga. The session examined the management of sugar imports and their possible impact on the local market.
Acting Chief Executive Officer Jude Chesire told the Committee that while the Kenya Sugar Board has largely addressed earlier governance and institutional challenges, some legal disputes are still pending before the courts.
He said cases filed at the Kakamega High Court are challenging the structure of the Board, including representation and the delineation of sugar catchment areas.
“While these matters are scheduled for mentions in May and June 2026, the absence of conservatory orders means that the Board’s structural implementation continues, though under a cloud of potential future invalidation that could dismantle its current governance provisions,” said Chesire.
On governance reforms, the Board said it has begun constituting its membership, with elections for five grower representatives set for June 23, 2026 and two miller representatives on June 24, 2026. Four members have already been appointed.
However, the Committee requested documentation to confirm that those appointed meet the legal requirements.
Attention was also drawn to a COMESA-approved refinery established in Mombasa in 2025, which has remained idle due to a shortage of raw materials. The company has since been allowed to import raw sugar for refining, with 27,000 metric tonnes currently held at the port.
On pricing, the Board explained that sugar prices are determined through a multi-stakeholder formula based on production costs and prevailing market conditions. In February, the pricing committee initially projected the price at Sh4,800 before adjusting it to Sh5,425 to safeguard farmers’ earnings, even as millers continue to face pressure on margins.
The Board has since constituted a team to review production costs and reassess the 50/50 revenue-sharing framework between farmers and millers as part of broader reforms under the Sugar Act (No. 11 of 2024).
The Board maintained that these reforms are aimed at strengthening governance, stabilising the sugar sector, and ensuring proper regulation of imports and industry operations.
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Source : The Eastleigh Voice
