Kenya Sugar Board denies release of harmful sugar into market amid US$11.6M import claims 

KENYA – Kenya Sugar Board has dismissed allegations that harmful sugar worth Ksh1.5 billion was imported, repackaged, and distributed into the local market, maintaining that no industrial sugar has been released for human consumption. 

In a statement issued after appearing before the National Assembly’s Departmental Committee on Trade, Industry and Cooperatives, the regulator described the claims as false and said the sugar consignment at the centre of the controversy remains under strict control. 

“The allegation that a consignment of harmful sugar worth Ksh1.5bn has been imported in the country, repackaged and distributed to the domestic market is false. No harmful sugar has been released for human consumption,” the board stated. 

The regulator explained that it has established compliance mechanisms to ensure sugar imported under the duty remission framework is strictly reserved for industrial purposes.  

These measures include annual audits on manufacturers to assess processing capacity and determine yearly sugar requirements. 

According to the board, company-specific requirements are submitted to the National Treasury’s Duty Remission Committee for approval before manufacturers are allowed to import sugar on a consignment-specific permit basis.  

Importers are also required to file monthly returns detailing quantities allocated, imported, and utilised. 

The board further noted that Kenya remains a net sugar importer because domestic production continues to fall below national demand.  

It said the country produced 472,773 metric tonnes of sugar in 2023, 815,454 metric tonnes in 2024, and 611,576 metric tonnes in 2025, compared to consumption of 1,152,205 metric tonnes in 2025 alone. 

During the same period, Kenya imported 608,178 metric tonnes in 2023, 338,345 metric tonnes in 2024, and 477,551 metric tonnes in 2025. 

The regulator stressed that refined sugar imported for industrial use is restricted to manufacturers and is not intended for retail sale. It argued that existing controls are sufficient to prevent diversion into the consumer market. 

On the specific case involving Mombasa Sugar Refinery Limited, the board said the company is a registered refinery authorised and gazetted by the East African Community Council of Ministers to import raw cane sugar for refining into white sugar for industrial use. It referenced Gazette Notice No. EAC/G2/92/2025 dated April 16, 2025. 

The Kenya Sugar Board said the disputed 27,000-metric-tonne consignment was imported in raw form and “has never been diverted nor offered for sale in the country.” It added that the sugar remains securely stored in a customs bonded warehouse at the Kenya Ports Authority pending completion of customs clearance procedures. 

The board also disclosed that the National Treasury Cabinet Secretary formed a multi-agency team in March 2026 involving the Kenya Sugar Board, Kenya Revenue Authority, Kenya Bureau of Standards, the State Department of Industry, and the National Police Service to oversee the release process and prevent diversion into consumer markets. 

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