Just weeks after West Kenya Sugar Company owned by the Rai Group secured a 30-year lease that will allow it to operate state-owned Nzoia Sugar Company, Agriculture and Livestock Development Cabinet Secretary, Mutahi Kagwe, has announced a Ksh 4 billion annual national sugar sector support plan during his tour of the facility with the aim of maximizing the potential of the company especially after years of its underutilization.
According to the CS, this initiative will be funded through the Sugar Development Levy (SDL)in a well structured to benefit the entire industry.
According to CS Kagwe, 40% of the SDL—approximately Ksh 2 billion—will be directed towards cane development countrywide while Other three sectors; rehabilitation of roads in sugar-growing areas, research and innovation to boost productivity and revamping sugar factories will each get Ksh 600 million.
The other Ksh 200 million will facilitate strengthening farmer cooperatives and associations as the remaining 10% of the allocated Ksh 2 Billion will cover operational expenses of the Sugar Board.
“These allocations are the product of wide consultation and address concerns raised by farmer groups and industry stakeholders,” said the CS, stressing the importance of building long-term resilience in the sector.
He encouraged support for private investors, such as West Kenya Sugar, that are helping revive struggling mills. “To transform Kenya into a net exporter of sugar by 2026, we must back those investing heavily in the sector,” he stated.
Kagwe applauded the leasing of five public sugar mills to private investors, emphasizing the move is already delivering results improving production, creating jobs, while reducing Kenya’s dependency on imports
The Agriculture and Food Authority (AFA), in its report highlighted the growing influence of Rai Group in Kenya’s sugarcane sector stating that as of September 30, 2024, the group controls nearly half of Kenya’s sugarcane cultivation area. This adds to the Government’s trust in leasing a key sugar company to spearhead its revival.
As part of his broader evaluation of private sector involvement in sugar reforms, Kagwe also visited Butali Sugar Mills, another major private player in Kakamega County.
