Kenya halts new sugar import licences as government moves to protect local farmers

KENYA – Kenya’s Agriculture Cabinet Secretary Mutahi Kagwe has announced that the government will not issue any new sugar import licences, saying domestic production is now sufficient to meet local demand and support the country’s sugarcane farmers. 

Speaking during a consultative meeting with sugarcane growers, Kagwe said the existing ban on sugar imports would remain in place as the government intensifies efforts to strengthen Kenya’s domestic sugar industry. 

“We will not issue any new licences for sugar imports because local production is now enough to satisfy the country’s market. Our priority is to protect our farmers and strengthen the local sugar industry,” Kagwe said. 

According to the Cabinet Secretary, Kenya currently has adequate sugar stocks, eliminating the need for additional imports. He emphasised that the government remains committed to ensuring that imported sugar does not undermine local producers. 

Kagwe said boosting domestic production remains a key component of the government’s agricultural agenda, noting that farmers should have access to a reliable market for their produce. 

He added that sugar imports have declined sharply from approximately 210,000 metric tonnes last year to around 60,000 metric tonnes in 2026. 

The reduction has been partly linked to the KSh40 per kilogram excise duty introduced under the Finance Act, 2026, which has discouraged imports by local millers. 

Kagwe said restrictions on imports would help increase returns for sugarcane growers while encouraging additional investment in the industry. The announcement is expected to provide relief to farmers who have repeatedly raised concerns that imported sugar depresses local prices and discourages production. 

The Cabinet Secretary also assured farmers that the government is working to clear outstanding payments owed to growers. 

He noted that KSh265 million in historical arrears remains unpaid and reaffirmed the government’s commitment to settling the balance. 

The latest announcement comes only weeks after Parliament launched an investigation into the importation of raw sugar amid concerns over regulatory compliance and tax exemptions. 

The National Assembly Departmental Committee on Trade, Industry and Cooperatives questioned the Kenya Revenue Authority over the clearance of imported sugar by Mombasa Sugar Refinery Limited. 

Lawmakers also raised concerns over nearly KSh3 billion in tax exemptions granted to the importer and questioned the absence of documentation detailing the sugar’s manufacturer, production date and expiry information. 

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