Kenya unveils sugar industry bio-economy plan to boost ethanol production, green energy 

KENYA – Kenya has 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. 

Jude Chesire, Chief Executive Officer of the Kenya Sugar Board and Chairman of the International Sugar Organization, said the plan is designed to unlock the full value of sugarcane by converting its byproducts into commercially viable outputs such as ethanol and green energy. 

Delivering a keynote address titled “Sweetening the Future” at the Informa Africa Sugar Conference, Chesire emphasised the need for the sector to diversify. 

“We are rethinking the future through the lens of the bio-economy,” he said, adding that long-term sustainability will depend on innovation and efficient resource utilisation. 

The strategy focuses on three core areas. Kenya aims to scale up ethanol production using molasses, expand green energy generation through bagasse-based co-generation, and increase the industrial use of molasses to minimise waste across the value chain. 

Chesire said the approach is expected to stabilise revenues, reduce production costs and support more than eight million livelihoods linked to the sugar sector. It will also strengthen the country’s renewable energy ambitions. 

To enable the transition, the Kenya Sugar Board plans to modernise both farming and processing. This includes introducing high-yield cane varieties, expanding mechanisation and applying precision agriculture to improve efficiency and productivity. 

The board is also repositioning its role within the sector. Chesire noted that it will shift from being primarily a regulator to acting as a strategic leader focused on building farmer confidence through fair pricing mechanisms and transparent agreements. 

The plan aligns with global environmental, social and governance standards, with a focus on climate-smart farming practices and clean energy investments aimed at reducing the sector’s carbon footprint. 

Chesire also called for stronger collaboration between public and private sector stakeholders, urging industry players to leverage the African Continental Free Trade Area to expand exports of ethanol and other bio-based products. 

“With improved efficiency and diversified outputs, Kenya is positioning itself as a regional leader in agro-industrial innovation,” he said. 

“We are at an inflection point. Kenya is ready to lead Africa’s next chapter with a diversified, sustainable, and competitive agro-industrial powerhouse.” 

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