Kenya to open import window for raw sugar to support industrial production 

KENYA – Kenya is set to open a special importation window for raw sugar to sustain industrial sugar production, which has been crippled by a severe shortage of cane. 

Investments, Trade and Industry Cabinet Secretary (CS) Lee Kinyanjui announced that the country faces a deficit of nearly 400,000 metric tonnes of sugar, a gap that has left significant investments in the sector idle.  

The importation, he said, would specifically target raw sugar for refining into industrial sugar used in food, beverages, pharmaceuticals, and distilleries. 

Speaking during a tour of Kibos Sugar and Allied Industries in Kisumu on Thursday, the CS explained that the move was aimed at stabilising the sugar sector while saving the government the cost of importing finished industrial sugar. 

“We don’t have enough raw sugar to process industrial sugar. As a result, we have to import because factories such as this one in Kibos, which cost more than Sh2 billion to set up, have not worked since 2016,” Kinyanjui said. 

The CS emphasised that the planned importation is a temporary measure, noting that the government has rolled out a programme to collaborate with farmers and county governments to expand cane production. The strategy is expected to achieve self-sufficiency within the next two to three years. 

He further disclosed that sugar factories have been placed under watch to strengthen outreach programmes with cane farmers through grower schemes, ensuring a steady supply of raw material to mills. He reassured stakeholders that the initiative would not affect local cane farmers or domestic sugar production. 

“Importation does not mean we suspend our regulations. There are mechanisms for quality control, and this will be followed to the letter. What we are trying to end is the culture of importing what we can produce locally,” he said. 

Kinyanjui added that the government’s priority is to protect local industries while preserving foreign exchange. “Every time we import, we drain foreign exchange that could be retained by producing here. The balance is to protect our local industries, create jobs for young people, and still meet industrial demand,” he said. 

Kibos Sugar and Allied Industries Managing Director Bhire Chatthe noted that the company’s Kes 2 billion refinery, established in 2016, requires 165,000 metric tonnes of raw sugar annually to operate.  

However, the demand could not be met by the group’s raw sugar production or that of other factories in the country. 

Chatthe revealed that in 2023, the company sought approval from the East African Community Secretariat to import 165,000 metric tonnes but only received clearance for 5,000 metric tonnes, leaving its refinery idle.  

He explained that operationalising the facility could save Kenya up to Sh20 billion annually in import substitution while creating jobs and expanding tax revenue. 

He assured that sugar imports would not flood the market, emphasising that Kibos has consistently complied with national standards during its 15 years of operation.

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