Kenyan sugarcane farmers reject US$42.5 price, threaten strike over Kenya Sugar Board directive
Kenyan sugarcane farmers oppose new Kes5,500 pricing directive, threaten strike as tensions rise over revenue sharing, consultation gaps, and government efforts to balance market conditions and industry sustainability.
KENYA – Kenyan sugarcane farmers have rejected a revised minimum cane price of Kes 5,500 (US$42.51) per tonne set by the Kenya Sugar Board, escalating tensions with regulators and threatening an industry-wide strike following a reduction from the previous Kes 5,750 (US$44.45) rate.
The directive, issued on April 24, 2026, was signed by Acting Chief Executive Officer Jude Chesire, who instructed all licensed millers to implement the new price immediately and ensure prompt payments to farmers.
The adjustment followed deliberations by the 4th Interim Sugarcane Pricing Committee, which held meetings on April 17 and April 24, alongside what the board described as extensive consultations.
According to the board, the revised rate remains competitive within the East African region. It noted that farmers in Tanzania earn approximately Kes 4,900 (US$37.88) per tonne, while those in Uganda receive around Kes 4,500 (US$34.78) per tonne.
Despite this, farmer representatives have strongly opposed the decision. Richard Ogendo, Secretary General of the Kenya Sugarcane Growers Association (KESGA), said the move contradicts national economic priorities.
“Allowing millers to profit at the expense of farmers goes against the spirit of improving livelihoods,” he said, calling on William Ruto to intervene.
Farmers have begun collecting signatures in preparation for a petition to Parliament, while also raising concerns about revenue sharing within the sector.
One of their key demands is the inclusion of molasses in profit-sharing arrangements, arguing that millers generate additional income from by-products such as electricity and industrial inputs without compensating growers.
Michael Arum, coordinator of the Sugar Campaign for Change (SUCAM), criticised the process used to arrive at the revised pricing. He said the decision lacked sufficient stakeholder consultation, intensifying dissatisfaction among farmers.
Meanwhile, Mutahi Kagwe, Cabinet Secretary for Agriculture and Livestock Development, defended the price adjustment, stating it was necessary to balance farmer earnings, miller sustainability, and current market conditions.
He noted that increased sugar production in 2026, supported by improved cane availability and higher factory throughput following the leasing of state-owned mills, had influenced the decision.
“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 said.
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