Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe has unveiled a sh.4 billion annual investment plan to revitalise Kenya’s sugar industry.
The announcement was made during his tour of West Kenya Sugar Company, which was recently awarded a 30-year lease to operate the state-owned Nzoia Sugar Company.
The visit aimed to promote sustainable practices in sugar production and assess private sector participation in turning around struggling state mills.
The new initiative, to be funded through the Sugar Development Levy (SDL), is designed to strengthen the entire sugar value chain, from cane farming to processing and market competitiveness.
Breakdown of the Ksh 4 Billion Investment Plan:
40% (approx. sh.2 billion): National cane development programs
15% (sh.600 million): Rehabilitation of roads in sugarcane-growing regions
15% (sh.600 million): Support for research and innovation
15% (sh.600 million): Factory rehabilitation across the sector
5% (sh.00 million): Strengthening farmer associations
10%: Administrative operations under the Sugar Board
“These allocations reflect extensive consultations with farmers’ unions and miller representatives, and are structured to deliver long-term sustainability for the sugar sector,” said CS Kagwe.
Meanwhile, CS Kagwe praised West Kenya Sugar Company, owned by the Rai Group, for its ongoing investments and strong farmer support systems. The company currently services over 120,000 contracted farmers, disbursing more than sh.14 billion annually in payments and investing an additional sh.7 billion each year in cane development.
According to the Agriculture and Food Authority (AFA), nearly 50% of all land under sugarcane cultivation in Kenya is managed by Rai Group-affiliated companies, highlighting their growing influence in the sector.
To curb the persistent issue of cane poaching, the Cabinet Secretary urged farmers to remain loyal to millers who invest in their growth. He directed the Sugar Board to convene a meeting to establish zonal boundaries for millers to reduce inter-company conflicts.
Kagwe also emphasized the importance of harvesting fully matured cane to improve sugar quality and help Kenya become a net exporter of sugar by 2026.
In addition to West Kenya Sugar, CS Kagwe also toured Butali Sugar Mills, another major private miller in Kakamega County. The visit forms part of his broader campaign to assess and support private sector contributions to sugar sector reform.