Kenya turns to sugarcane ethanol to cut fuel costs, revive sugar industry 

KENYA – Kenya is accelerating plans to integrate sugarcane ethanol into its energy and agricultural sectors as the government seeks to reduce fuel costs, strengthen energy security and revive the country’s struggling sugar industry through reforms inspired by Brazil’s biofuel model. 

The strategy was unveiled during the 68th International Sugar Organization Seminar held in Diani, where Deputy President Kithure Kindiki and Agriculture Cabinet Secretary Mutahi Kagwe outlined plans to reposition sugarcane as both a food and energy resource. 

Speaking during the forum, Kindiki said the government intends to review the Sugar Act and related regulations to formally incorporate ethanol production into Kenya’s sugar industry framework.  

He added that authorities would collaborate with the Energy and Petroleum Regulatory Authority (EPRA) to establish fuel blending regulations that support the use of ethanol in the domestic fuel market. 

The government’s renewed interest in sugarcane ethanol follows growing attention toward Brazil’s sugar industry, where ethanol production has significantly reduced dependence on imported fuel while supporting industrial growth and energy stability. 

Presentations during the conference indicated that Brazil has replaced more than four billion barrels of gasoline with ethanol over the last five decades, generating billions of dollars in savings and improving national energy security. 

Kagwe said Kenya must diversify beyond traditional sugar production if the sector is to remain sustainable amid rising global economic uncertainty and fuel price volatility. 

“We have focused completely on the farmer by increasing their income,” Kagwe said, adding that the global sugar industry has concentrated too heavily on “the sweetness of sugar and trade” while overlooking the welfare of farmers and workers sustaining the sector. 

He said ethanol production and other sugarcane by-products could become critical revenue streams for the industry in the coming years. 

“We are now thinking about ethanol seriously from sugar especially with the global disruption of fuel prices,” Kagwe stated. 

In remarks highlighting the scale of the proposed transformation, Kagwe suggested that sugar may eventually become a secondary output from sugarcane processing in Kenya. 

“We want sugar to become a by-product in Kenya, not the only product,” he said. 

Government officials said reforms under the Sugar Act 2024 are already creating a foundation for investment in ethanol production, cogeneration and broader value-addition opportunities within the sector. 

The Kenya Sugar Board has also proposed scaling up ethanol production through increased distillation of molasses and expanded use of bagasse, the fibrous residue from sugarcane crushing, for green energy generation. 

Kindiki noted that reforms introduced since 2022 were already yielding results, including expansion of sugarcane cultivation by 200,000 hectares and improved farmer earnings supported by fertilizer subsidy programmes. 

Kenya’s sugar industry supports more than six million people directly and indirectly, particularly across western Kenya, where cane farming remains a major economic activity. 

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