Kenya sugar farmers back import levy hike as industry pushes for sector revival 

KENYA – Sugar cane farmers in Kenya have welcomed Parliament’s decision to raise sugar import levy from KES 4 (US$0.031) to KES 40 (US$0.31) per kilogramme, saying the move could revive struggling sugar sector and shield local producers from unfair competition. 

Through Sugar Campaign for Change (Sucam), farmers expressed support for Finance Bill, 2026, which was passed by National Assembly on June 18, and urged President William Ruto to assent to legislation. 

SUCAM coordinator Michael Arum said change would provide long-awaited boost to a sector that supports millions of Kenyans directly and indirectly through farming, transportation, trade and factory operations. 

“We appreciate the 122 members of Parliament who supported the Bill and stood with millions of Kenyans whose livelihoods depend on the sugar industry,” Arum said. 

The proposed levy increase has generated debate, with critics warning that higher import costs could translate into increased sugar prices for consumers. 

However, farmers argue historical trends do not support that claim. 

According to Sucam, sugar prices have risen despite increased imports. 

The lobby group cited data showing Kenya imported nearly one million tonnes of sugar in 2017, yet retail prices increased to KES 132 per kilogramme from KES 115.60 the previous year when imports were lower. 

Similarly, sugar imports nearly doubled between 2022 and 2023, but consumer prices rose from KES 140 (US$1.08) to KES 196 (US$1.51) per kilogramme. 

The farmers maintain import volumes alone do not determine retail sugar prices and protecting local production strengthens the industry’s long-term sustainability. 

Sucam also dismissed concerns levy increase could trigger retaliatory trade measures from countries within Common Market for Eastern and Southern Africa (Comesa). 

The lobby group argued a significant proportion of Kenya’s sugar imports originate outside the Comesa Free Trade Area and pointed to countries such as Egypt, which implemented restrictions on sugar imports to protect domestic producers. 

Arum noted Kenya’s sugar sector remains vulnerable despite recent reforms, including leasing of state-owned sugar factories to private investors. 

He said transition has disrupted support systems farmers previously relied on, including extension services, coordinated harvesting programmes and out-grower institutions. 

“As a result, many farmers face challenges ranging from delayed harvesting and transportation bottlenecks to reduced returns caused by prolonged waits at factory weighbridges,” Arum said, adding complaints about delays and poor responses to farmers’ concerns remain widespread. 

He argued the sugar industry should be viewed as a strategic sector undergoing restructuring rather than being judged solely on whether it has outgrown government protection. 

In May, Agriculture Cabinet Secretary Mutahi Kagwe outlined plans to integrate sugarcane ethanol into energy and agricultural sectors to reduce fuel costs, improve energy security and revive the sugar industry. 

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