Kenya Sugar Board cuts sugarcane price amid rising supply and market pressures
Kenya reduces sugarcane prices to Kes 5,500 per tonne following market consultations, citing increased supply and the need to balance farmer earnings with miller sustainability.
KENYA – The Kenya Sugar Board has announced a downward revision of sugarcane prices, reducing the minimum rate from Kes 5,750 (US$44.55) to Kes 5,500 (US$42.61) per tonne, effective immediately.
In a notice issued on April 25, 2026, following meetings of the Interim Sugarcane Pricing Committee held on April 17 and April 24, the board confirmed the new pricing directive. The communication, signed by Acting CEO Jude Chesire, instructed all millers to comply with the revised rate and ensure timely payments to farmers.
“The 4th Interim Sugarcane Pricing Committee was appointed by the Cabinet Secretary, Ministry of Agriculture and Livestock Development vide his letter Ref: MOALF/S.11/25a/7/TY/3 dated 9th January 2025,” the notice stated.
“We refer to the Fifth and Fourth meetings of the interim sugarcane pricing committee held virtually on 24th April 2026 and physically on 17th April 2026, respectively, and subsequent extensive consultations on sugarcane prices. This is therefore to notify you that a new sugarcane price of Kes 5,500 per tonne has been approved effective immediately.”
The revision reverses the previously set price of KSh5,750 per tonne. The board maintained that the updated rate remains competitive within the region.
“This new price is comparatively high in the region. You are hereby requested to adhere to the new minimum cane price while making payments to the farmers on time,” the board stated.
The directive was issued to key millers, including West Kenya Sugar Company, Kibos Sugar and Allied Industries, Butali Sugar Mills and Mumias Sugar (2021) Limited, among others.
According to the Ministry of Agriculture and Livestock Development, the decision followed consultations aimed at balancing farmer earnings, miller sustainability and prevailing market conditions.
“The government has revised the minimum sugarcane price following consultations to balance farmer earnings, miller sustainability, and current market realities,” the ministry said in a statement.
The ministry added that the review was informed by increased sugar production and cane availability across the country. It noted that some millers had proposed a lower price of Kes 5,000 per tonne, but the government opted for the current rate to cushion farmers.
“With more sugar in the market, prices have dropped from about Kes 7,000 to between Kes 6,000 and Kes 6,100 per 50kg bag, making the review necessary to keep factories operational and the industry sustainable,” the ministry stated.
The new pricing directive takes effect immediately as stakeholders adjust to the updated market conditions.
Earlier this month, the board unveiled a strategy to transform its sugar industry into a bio-economy and energy hub, signalling a shift from traditional sugar production to a diversified agro-industrial model.
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