The government is preparing to open a special window for the importation of raw sugar in a bid to revive industrial sugar production, which has been severely disrupted by an acute shortage of sugarcane.
Investments, Trade and Industry Cabinet Secretary Lee Kinyanjui said the country is facing a deficit of close to 400,000 metric tonnes of sugar, leaving billions of shillings’ worth of investments in factories lying idle.
During a visit to Kibos Sugar and Allied Industries in Kisumu on Thursday, Kinyanjui noted that the imports would be restricted to raw sugar for refining into industrial sugar used in manufacturing sectors such as food, beverages, pharmaceuticals, and distilleries.
Accompanied by Industry Principal Secretary Dr. Juma Mukwana and his Trade counterpart Regina Akoth, he said this move was expected to stabilize the sector.
“Industrial sugar production has been crippled because we simply don’t have enough raw sugar for refineries. Facilities like the one here in Kibos, worth more than Sh2 billion, have remained underutilized since 2016,” the CS said.
Stop-Gap Plan
Kinyanjui described the importation as a short-term measure while the government works on longer-term solutions.
He said the ministry has drawn up a programme to work with farmers and county governments to expand cane farming, with the goal of self-sufficiency in the next two to three years.
The state has also put sugar factories under close watch, directing them to strengthen out-grower schemes and engage farmers directly to guarantee consistent cane supply.
He stressed that the proposed import window is exclusively for industrial sugar and will not interfere with raw sugar production or affect farmers’ earnings.
“All imported sugar will undergo strict quality checks. Regulations are not being suspended. Our aim is to stabilize production and end the reliance on imports for products we can process locally,” he said.
Kinyanjui added that the government must strike a balance between meeting demand and protecting local industries.
“Every tonne we import costs the country valuable foreign exchange. The priority is to support local industries, safeguard jobs, and reduce the import bill.”
Kibos Factory’s Struggles
Kibos Sugar Managing Director Bhire Chatthe said the company’s refinery, set up in 2016 at a cost of Sh2 billion, requires at least 165,000 metric tonnes of raw sugar annually to operate at full capacity.
He noted that local production is far below this requirement, and the company’s application to the East African Community Secretariat last year to import the needed tonnage only resulted in 5,000 metric tonnes being approved. As a result, the facility has remained largely idle.
According to Chatthe, making the Kibos refinery fully operational could save the country about Sh20 billion in import substitution while creating thousands of jobs and boosting government revenue.
“The gains to Kenya go beyond direct employment. Reduced imports mean more money stays within the economy, while the industry generates tax revenue and supports other sectors,” he said.
The managing director dismissed concerns that sugar imports would overwhelm the market, saying Kibos has consistently complied with national standards since it began operations 15 years ago.
“Our biggest hurdle is access to raw sugar. Without it, the refinery cannot run. But when we get it, we can meet industrial demand without compromising quality or flooding the market,” he added.
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