Kenyans Face Sugar Price Drop as Govt Reduces Cane Prices by Ksh250

Kenyans Face Sugar Price Drop as Govt Reduces Cane Prices by Ksh250

Kenya is set to experience a gradual drop in sugar prices following a government directive to reduce the minimum price of sugarcane, a move that signals shifting dynamics in the country’s sugar industry amid increased production and changing market conditions.

In a notice issued on April 24, 2026, the Kenya Sugar Board announced a downward revision of the minimum cane price from Ksh5,750 to Ksh5,500 per tonne. The directive, which takes immediate effect, requires all millers to comply and ensure timely payments to farmers.

Kenya Sugar Board Chief Executive Officer Jude Chesire said the decision was reached after extensive consultations involving stakeholders across the value chain, including farmers, millers and policymakers.

“This is therefore to notify you that the new sugarcane price of Ksh5,500 per tonne has been approved, effective immediately. This new price is comparatively high in the region,” Chesire stated.

“You are hereby requested to adhere to the new minimum cane price while making payments to the farmers on time,” he added.

The revision comes against the backdrop of increased sugar production in the country, driven by improved cane supply and the revival of previously dormant factories now under private management. Industry insiders say the surge in output has expanded supply in the market, prompting a natural decline in retail sugar prices.

Previously, a 50-kilogramme bag of sugar retailed at approximately Ksh7,000, a factor that informed the earlier cane price of Ksh5,750 per tonne. However, recent data indicates that prices have fallen to between Ksh6,000 and Ksh6,100 per bag, forcing a recalibration of input costs to sustain the industry.

Sources familiar with the deliberations revealed that some millers had pushed for a more drastic reduction of cane prices to Ksh5,000 per tonne, citing rising operational expenses and narrowing profit margins. However, the government opted for a moderate adjustment in a bid to cushion farmers from significant income losses.

The move highlights the delicate balance policymakers must strike between protecting farmers’ livelihoods and ensuring the sustainability of millers in a competitive market environment.

Analysts note that while lower cane prices could ease production costs and translate into more affordable sugar for consumers, there are concerns that reduced earnings could discourage farmers from maintaining or expanding cane production in the long term.

Despite the reduction, the government maintains that Kenyan farmers remain among the best paid in the region. Comparative figures show that sugarcane farmers in Tanzania earn approximately Ksh4,900 per tonne, while their counterparts in Uganda receive about Ksh4,500 per tonne.

This, according to officials, underscores Kenya’s continued competitiveness in the regional sugar market even after the price adjustment.

The directive also emphasises the importance of timely payments to farmers, an issue that has historically plagued the sector and contributed to declining morale among growers.

Stakeholders are now expected to closely monitor the impact of the new pricing on both production levels and market prices in the coming months. Economists suggest that if production remains high and supply continues to outpace demand, consumers could benefit from further reductions in sugar prices.

At the same time, the government faces the challenge of ensuring that the gains made in revitalising the sugar sector are not undermined by policy shifts that could weaken farmer participation.

As the new pricing structure takes effect, attention will be on how industry players adapt to the changes and whether the anticipated benefits—particularly lower consumer prices—will be realised without destabilising the backbone of the sector: the farmers.

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Kenyans Face Sugar Price Drop as Govt Reduces Cane Prices by Ksh250