Sugar Sector Reforms Gain Farmer Backing

By Kepher Otieno - Reporter

Kenya, 1 January 2026 - Kenya’s sugar sub-sector reforms are beginning to win cautious endorsement from cane farmers, who say recent policy and legislative changes could restore commercial viability to an industry long plagued by inefficiency, debt and market distortions.

However, farmers warn that the gains remain fragile unless political support is sustained and entrenched interests are confronted.

Cane farmers, led by Kenya National Federation of Sugar Cane Farmers Secretary General Killion Osur have praised President William Ruto for pushing reforms aimed at restructuring the sector.

Speaking in Kisumu, Osur said the President’s interventions had already started to yield results, but stressed that meaningful recovery would require coordinated action by regulators, millers, financiers and growers.

At the centre of the reforms is the recently operationalised Sugar Act and its accompanying regulations, which farmers view as a long-overdue attempt to impose order and predictability in the sector.

From a business perspective, the Act seeks to correct structural weaknesses that have discouraged investment and undermined farmer incomes for decades.

Key among the changes is the establishment of the Kenya Sugar Board (KSB), a regulator expected to oversee industry governance, pricing frameworks, and development planning.

Osur described the board’s creation as “long overdue,” noting that the absence of a strong regulator had allowed inefficiencies and rent-seeking behaviour to flourish.

The Act also introduces a sugar levy and a structured framework for research and development—measures that farmers believe could improve productivity and competitiveness.

The proposed 40% levy allocation to farmers, to be managed through the KSB, is seen as a potential game-changer for cash flows at farm level, where delayed payments and low returns have historically constrained reinvestment.

From an investor and policy standpoint, these reforms are intended to stabilise the sector, reduce reliance on imports and improve the commercial performance of local mills.

A more predictable regulatory environment could also support the government’s broader agro-industrialisation agenda by encouraging value addition and regional trade.

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However, farmers caution that the reform process faces resistance from powerful cartels with vested interests in the status quo.

Osur accused these groups of using court cases to frustrate the implementation of reforms, particularly the scheduled elections of the Kenya Sugar Board.

He claimed the legal challenges were being financed by non-farmers seeking to retain control over the industry for “selfish ends.”

The dispute highlights a familiar risk in Kenya’s agricultural reforms: policy changes that threaten established networks often face prolonged litigation, creating uncertainty that undermines confidence among farmers, millers and financiers.

Osur urged President Ruto to take a more direct role in countering what he described as deliberate attempts to roll back reforms, warning that farmers could resort to mass demonstrations if progress stalls.

He further argued that disputes over regional boundaries—cited in some of the court cases—should be addressed through Parliament rather than the judiciary, saying farmers were more concerned with market access, pricing and timely payments than administrative demarcations.

Beyond domestic reforms, farmers also see strategic value in Kenya’s growing profile in global sugar governance.

Osur welcomed the election of Kenya Sugar Board Chief Executive Officer Jude Chesire as head of the International Sugar Organisation, saying the move could enhance Kenya’s voice in international sugar policy discussions. From a business perspective, this elevation could improve access to market intelligence, policy coordination and trade opportunities, benefiting both producers and millers.

As things stand, the sugar sector reforms signal a renewed attempt to turn a politically sensitive industry into a commercially sustainable one.

While farmer sentiment appears cautiously optimistic, the success of the reforms will depend on consistent policy enforcement, resolution of legal disputes and the ability of the new institutions to withstand political and commercial pressure.

For now, the sugar industry remains a high-stakes test of whether regulatory reform can translate into real economic returns for farmers and investors alike.

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