Kenya : No need to panic! State assures of stable sugar prices despite production decline
Kenya Sugar Board assured stable sugar prices despite a 25% drop in 2025 production to 613,000 MT. Output declined due to reforms, factory closures, and weather, but recovery plans, mill rehabilitation, and expanded cane programs aim to restore production from late 2026.
The Kenya Sugar Board (KSB) has assured Kenyans that sugar prices will remain stable despite concerns over supply caused by production challenges in recent months.
In a statement released on Thursday, January 22, KSB CEO Jude Chesire said the country’s sugar supply remains secure, even as demand rises due to population growth, expanding urban consumption, and increased industrial use.
“We wish to assure Kenyans that there is no cause for panic and continue buying sugar with confidence,” Chesire said.
Data from the Kenya National Bureau of Statistics (KNBS) indicate that national sugar production in 2025 stood at 613,000 metric tonnes, meeting only 61 per cent of the estimated demand of 1.2 million tonnes. This is a decline from 815,000 tonnes recorded in 2024, representing a 25 per cent drop.
KSB said the decline was anticipated as the industry entered a major reform phase.
The board said several factors contributed to the temporary reduction in production, including weather conditions, deliberate measures to protect future cane, and structural reforms in the sugar sector.
According to Chesire, much of the mature cane had been harvested in 2024, leaving a significant portion in 2025 still in developmental stages. This necessitated the temporary closure of seven sugar factories in the Lower and Upper Western regions to allow cane to reach optimal maturity. “This ensures higher sucrose content and protects farmers’ future earnings,” he explained.
Private sector transitions also affected output. Four state-owned sugar factories were initially closed to facilitate leasing to private investors. The factories subsequently underwent extensive rehabilitation worth Sh12.5 billion, reducing milling capacity for approximately nine months.
Kwale Sugar also remained non-operational during 2025. KSB said these measures were essential to modernise the industry and secure reliable production in the long term.
The board further cited dry spells in late 2025 and early 2026 in key growing zones as a factor that slowed cane development, reduced tonnage per hectare, and affected factory throughput.
Chesire emphasised that while these conditions added temporary pressure on production, recovery programs are designed to mitigate weather-related impacts in future seasons.
Despite the production challenges, the board said sugar demand continues to grow and ensuring a stable supply is a national priority. The government and industry regulators have implemented market stabilisation measures to protect consumers from artificial shortages and price speculation.
Farmers remain central to the recovery strategy. Cane maturity timelines are being respected, and Sh1.2 billion in Sugar Development Levy-funded programs are set to accelerate cane development in 2026. This includes expansion of cultivation areas and the introduction of early-maturing varieties from the Sugar Research Institute.
KSB said these initiatives, combined with mill rehabilitation, will improve payment reliability, boost yields, and prepare the sector for higher production.
Millions of tonnes of cane are already planted with the support of millers, and harvesting and milling are projected to resume strongly from October to November 2026. Chesire said this marks the start of a sustained rebound in domestic production.
“The challenges of late 2025 and early 2026 are real, but they are temporary. The reforms are permanent. The assurance to Kenyans is clear: sugar supply will remain stable as the industry completes its recovery,” Chesire concluded.
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Source : The Star
