Ruto sets goal to make Kenya sugar exporter by 2027

He said interventions in place are beginning to show promising fruits

by FELIX KIPKEMOI

News20 January 2025 - 20:58

In Summary

He cited out that the writing off of Sh117 billion in debts.
The head of state made made the remarks during the launch of the issuance of Sh150 million bonus payment for sugarcane farmers.

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President William Ruto in Kakamega on January 20, 2025/PCS

President William Ruto has announced plans to transform the country into a major sugar exporter by 2027.

Speaking in Kakamega Monday, Ruto emphasised the country's ongoing strategies implemented to revitalise the industry, which he said has long faced challenges, including production gaps

He pointed out that the writing off of Sh117 billion in debts, including the payment of Sh1.7 billion in farmers' arrears and Sh650 million owed to employees, was part of the efforts to revive the sector.

These efforts, he noted, are beginning to show promising fruits.

"With a record 832,000 metric tons of sugar produced last year, Kenya is on course to attain surplus production and commence regional exports by 2027, turning sugarcane cultivation into a viable and rewarding venture," he said.

The Head of State made the remarks during the launch of the issuance of Sh150 million bonus payment for sugarcane farmers at the Mumias Sugar Company Limited.

The payment will see sugar farmers who have supplied cane to Mumias Sugar factory benefit.

The historic bonus payment to farmers, Ruto stated, not only validates the success of the reforms introduced in the sugar sector but is also evidence of the potential to uplift farmers and support tens of thousands of livelihoods.

He added that in line with other measures outlined in the 2019 Sugar Taskforce, he had assented to the Sugar Act 2024, which establishes sugarcane catchment areas to better manage supply, synchronise milling operations, and improve efficiency.

"We have asked the new Cabinet Secretary for Agriculture, Mutahi Kagwe, who is here with us today, to finalise regulations to operationalise the Sugar Act to provide clarity and get rid of cartels in the sector," he said.

The President also pointed out that the government is also distributing subsidised fertiliser to enhance productivity and increase farmers' income.

He said the bonus payment would have a substantial impact on the growth of the sugar sector, which is a key target for Kenya's export plans.

"To support this, 50 per cent of the annual rent paid to the bank will be distributed as a bonus to farmers on a pro-rata basis, depending on the quantity of sugarcane each farmer supplies to the miller," President Ruto explained.

The President said this will ensure fairness and transparency, and will be adjusted appropriately on the basis of the company’s performance.

He pointed out that the model can be replicated in other publicly-owned sugar companies once they are leased, and the board will conduct a comprehensive study to develop a robust system of giving incentives to farmers.

"Additionally, Cane testing units will be utilised to ensure farmers receive additional payments based on the quality of their cane along with the payments based on weight," he said.

The President asked Kagwe to increase subsidised fertiliser for sugarcane farmers from 700,000 bags last year to one million bags this year.

He said it was encouraging that farmers who supply cane to Mumias Sugar Company are being paid within seven days.

He further instructed the CS to work with the Sugar Research Board to have a particular fertiliser for sugarcane in a bid to increase production.

Agriculture Principal Secretary Paul Ronoh was also present.

Others are Deputy President Kithure Kindiki among a host of leaders from the region.