Kenya’s sugar output drops 15.8% in H1 2025  

KENYA – Kenya’s sugar sector is facing renewed strain in 2025, with official figures showing domestic output fell 15.8% in the first half of the year.  

Production dropped to 323,752 metric tonnes between January and June, down from 384,356 tonnes recorded during the same period in 2024. 

The decline was evident across most months, with June output plunging to 38,339 tonnes—nearly half the 75,500 tonnes produced in June last year. April and May also posted steep declines, at 36,194 tonnes and 32,760 tonnes respectively, compared to 59,263 tonnes and 56,271 tonnes a year earlier. 

Industry observers project that Kenya will face a deficit of nearly 400,000 tonnes in the 2025/26 cycle, necessitating higher import volumes to meet domestic demand. The slump is linked to reduced cane supply, attributed to overharvesting in previous cycles and a decline in cane acreage.  

The Kenya Sugar Board had earlier cautioned about shortages of mature cane, resulting in milling disruptions across the Western sugar belt. 

In response to the crisis, the government introduced a 4% Sugar Development Levy (SDL) effective July 1, 2025. The levy applies to both locally produced and imported sugar, with revenues allocated to cane productivity (40%), infrastructure and factory upgrades (30%), research (15%), and farmer support through cooperatives (5%). 

While the levy is intended to channel funds into sector rehabilitation, concerns remain about its potential to drive up consumer prices. Sugar prices have already shown volatility this year, with analysts warning that additional levies may intensify market pressures. 

Kenya continues to rely on imports to ease supply gaps. Sugar imports fell to 38,371 tonnes in June, down from 53,447 tonnes in May, though stocks increased to 19,078 tonnes, providing temporary relief. 

To support industrial processing, the government recently approved a special import window for raw sugar. Investments, Trade and Industry Cabinet Secretary Lee Kinyanjui said the imports will be refined into industrial sugar for use in food, beverage, pharmaceutical, and distillery sectors.  

He added that the importation is a temporary measure, as the government works with farmers and county governments to expand cane production and achieve self-sufficiency within two to three years. 

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.