Sugarcane farmers in Kenya demand payment of US$2.3M arrears 

KENYA – Sugarcane farmers in Kenya are demanding the immediate release of KES 300 million (US$2.3M) in unpaid dues accrued between October 2024 and April 2025.  

The payments are owed by the South Nyanza (Sony) Sugar Company, with growers lamenting the financial strain caused by the prolonged delay. 

Charles Atiang’a, the national chairman of the Kenya Association of Sugarcane and Allied Products, appealed to the government to honour its commitment and clear the arrears.  

He emphasized that the outstanding payments were incurred during a 10-month period under the previous management of Sony Sugar.  

“Our concern is that during the transition, the government said the old debts belonged to it. Farmers have children to take to school among other obligations,” Atiang’a stated. 

Sylvester Oketch, secretary general of the South Nyanza Farmers Association, expressed frustration over the continuous delays. He noted that despite repeated requests, farmers have not received any payments.  

“Sony Sugar Company has farmers’ arrears. We want the farmers paid as fast as possible because they also have pressing needs which they have to address,” he said.  

Oketch further urged the new investor to pay the farmers and later recover the money from the government, should the delay persist. 

In addition to the pending payments, farmers are also urging the new management of Sony Sugar to retain at least 70% of the company’s workforce.  

The current leadership, which took over in May 2025 under Busia Sugar and Allied Companies Managing Director Ali Taib, is expected to phase out the previous employees by October. 

Taib has declined responsibility for settling previous debts, shifting attention to the government, which had earlier committed to absorbing the financial liabilities.  

As of early 2024, five state-owned sugar factories collectively owed KES 128.07 billion (US$1 billion). In response, the Ministry of Agriculture allocated KES 654 million (US$5.1 million) in the 2023/2024 fiscal year to support struggling sugar firms.  

Of this amount, KES 354 million (US$2.7 million) was earmarked for payments to farmers linked to Nzoia, Muhoroni, Chemelil, and Sony Sugar. 

Meanwhile, the government recently raised the minimum sugarcane price to KES 5,750 (US$44.50) per tonne, up from KES 5,500 (US$42.57) in May. This marks the second increment in 2025, reflecting a 9.5% cumulative rise since April. 

The increase follows the introduction of a 4% Sugar Levy, applicable to both local and imported sugar, calculated based on ex-factory and CIF values respectively.  

All producers and importers are required to remit the levy by the 10th of each month following the transaction. 

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