Kenya sets minimum sugarcane price at Sh5,500 per tonne to support farmers and millers
Kenya fixed the minimum sugarcane price at Sh5,500 per tonne to stabilise the sugar industry amid rising cane supply and falling sugar prices. The government rejected millers’ request for lower prices, aiming to protect farmer incomes while supporting financial stability of sugar mills.
The government of Kenya has fixed the minimum sugarcane price at Sh5,500 per tonne as part of efforts to stabilise the country’s sugar industry amid changing market conditions.
In a directive issued on April 24, 2026, the Kenya Sugar Board instructed all licensed sugar millers to immediately implement the new pricing structure and ensure prompt payments to farmers.
The decision followed recommendations by the 4th Interim Sugarcane Pricing Committee, which reviewed cane prices based on trends in production, supply and market performance, The Eastleigh Voice reported.
According to the directive sent to millers, the newly approved cane price of Sh5,500 per tonne is considered competitive within the region. Millers were also directed to comply with the minimum price while ensuring timely payments to growers.
The committee noted that sugar production in Kenya has increased significantly in recent months, leading to higher cane supply and lower sugar prices in the market.
Officials said sugar prices have declined from nearly Sh7,000 per 50kg bag to between Sh6,000 and Sh6,100 per bag, putting pressure on millers and forcing a review of cane prices paid to farmers.
During consultations, millers reportedly sought a lower cane price of around Sh5,000 per tonne, citing falling sugar prices and increasing operational costs. However, the government decided on Sh5,500 per tonne as a middle path aimed at protecting farmers from a major drop in income while also supporting the financial stability of sugar mills.
Officials said the revised price was intended to balance the interests of both farmers and millers as the industry adjusts to changing market conditions.
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Source : ChiniMandi
