Kenya’s Mumias Sugar has issued a Ksh150 million bonus to cane farmers, a significant step in the company’s recovery.
This move coincided with calls from regional leaders for the government to expedite reforms in the sugar industry to safeguard Kenya from reliance on sugar imports.
Mumias Sugar, which resumed full operations a year ago, has faced numerous legal challenges, primarily from West Kenya Sugar Company Chairman Jaswant Singh Rai, who opposed the lease of Mumias Sugar to his brother Sarbi Singh Rai of Sarrai Group.
Recent reforms include the Sugar Act 2022, which re-established the Kenya Sugar Board, created the Kenya Sugar Research and Training Institute, and implemented the Sugar Development Levy.
Key challenges facing the industry include cane poaching and the need to strengthen outgrowers’ associations to protect farmers’ interests.
Recognizing the industry’s potential for surplus production and exports, leaders accompanying President William Ruto during the bonus issuance urged the Ministry of Agriculture to swiftly present the Sugar Regulation Bill to Parliament within one month.
The historic issuance of bonuses to Mumias Sugar Company farmers not only validates the success of our reforms but also amplifies the sugar sector’s potential to uplift farmers and support thousands of livelihoods in our country.
With a record 832,000 tonnes of sugar produced… pic.twitter.com/JGb23uBdJP
— William Samoei Ruto, PhD (@WilliamsRuto) January 20, 2025
They also demanded a crackdown on cartels flooding the market with cheap sugar imports.
“By limiting the number of new factories, the state will address the issue of cane poaching, which deprives our millers of essential raw materials,” noted Cooperatives Cabinet Secretary Wycliffe Oparanya.
“With a record 832,000 tonnes of sugar produced last year, Kenya is on track to achieve surplus production and commence regional exports by 2026,” stated President William Ruto.
