Kenya: Sugar Prices to Remain Stable Despite Production Dip, Kenya Sugar Board Assures
Nairobi — Kenyans should not expect a spike in sugar prices despite concerns raised by recent Kenya National Bureau of Statistics (KNBS) data, the Kenya Sugar Board has said, assuring consumers that national supply remains stable even as the sector recovers from production challenges.
In a statement on Thursday, the Board said the country has adequate sugar stocks to meet market demand, despite lower domestic output recorded in 2025 and continuing into early 2026.
“Kenya’s sugar supply remains secure. There is no cause for panic buying, and consumers should continue purchasing sugar with confidence,” the Board said.
According to industry data, national sugar production in 2025 stood at 613,000 metric tonnes, meeting about 61 per cent of the estimated national demand of 1.2 million metric tonnes. This marked a decline from the 815,000 metric tonnes recorded in 2024 a drop of about 25 per cent that regulators say was expected as the industry entered a major reform and restructuring phase.
The production decline was further compounded by dry conditions in key sugar-growing regions towards the end of 2025, which have continued into early 2026, slowing cane development and reducing factory throughput.
However, the Board said the reduced output was not driven by a single factor, but by a combination of planned industry reforms, protection of future cane supplies, and adverse weather conditions.
First, the cane maturity cycle in 2025 meant that much of the mature crop had already been harvested in 2024, leaving large volumes of cane still at developmental stages last year. To avoid premature harvesting and protect farmer incomes, seven sugar factories in Upper and Lower Western regions were temporarily shut to allow cane to reach optimal maturity and sucrose levels.
Second, four former state-owned sugar factories were closed to facilitate leasing to private investors, after which they underwent major rehabilitation works valued at Sh12.5 billion, resulting in nearly nine months of reduced milling capacity. Kwale Sugar Factory also remained non-operational throughout 2025. The Board said the temporary slowdown was necessary to modernise factories and secure long-term efficiency.
Third, prolonged dry spells in late 2025 and early 2026 reduced cane tonnage per hectare and slowed factory operations, adding short-term pressure on production levels.
“As a result, 2025 became a transition year, during which production dipped as the foundation for higher and more reliable output was being rebuilt,” the Board said.
With national sugar demand continuing to rise due to population growth, urban consumption and industrial use, the Board said market stabilisation measures are in place to cushion consumers from shortages and speculative pricing as production recovers.
Farmers, the Board said, remain central to the recovery strategy. Programmes funded through the Sh1.2 billion Sugar Development Levy will be rolled out in 2026 to accelerate cane development, including expansion of cultivation areas and introduction of early-maturing cane varieties developed by the Kenya Sugar Research Institute.
Combined with factory rehabilitation, the interventions are expected to improve payment reliability to farmers, increase yields and significantly boost national output.
“Millions of tonnes of cane are already in the ground with support from millers, and harvesting and milling are projected to resume strongly from October to November 2026, marking the start of sustained recovery in domestic production,” the statement said.
The Board said the current challenges are temporary, but reforms underway are designed to secure the sector for the long term.
“The assurance to Kenyans is clear: sugar supply will remain stable as the industry completes its recovery,” the statement said.
By Capital FM.
