Kenya is charting a new course for its sugar industry, shifting beyond raw sugar production to ethanol, renewable energy, and bio‑based products in a bid to cut fuel costs, create rural jobs, and restore confidence among farmers and investors.
Deputy President Kithure Kindiki said the government has undertaken sweeping reforms since 2022 to revive a sector long plagued by inefficiency, poor governance, and delayed payments. Speaking at the opening of the 68th International Sugar Organization Seminar in Diani, Kwale County, he noted that the reforms are already delivering results.
Land under sugarcane cultivation has expanded by 200,000 hectares, while farmer earnings have improved, partly due to fertilizer subsidy programmes. Kindiki emphasized that the revival is now irreversible, describing sugar as a lifeline for thousands of households.
“Every hectare of sugarcane represents a household’s livelihood, every mill that turns represents jobs, and every tonne of sugar that reaches the market represents income and return on investment,”
Deputy President Kithure Kindiki
The Deputy President highlighted the restructuring of the Kenya Sugar Board to enhance transparency and efficiency, alongside a leasing framework designed to attract private capital into state‑owned factories. These measures, he said, are restoring investor confidence and stabilizing production.
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Kenya’s new vision for the sector mirrors Brazil’s globally acclaimed sugarcane‑to‑fuel model. The government is encouraging cogeneration projects that allow factories to produce and sell electricity, while expanding ethanol output as part of cleaner transport fuels.
“The sugar industry of the future is one that will produce not just sugar, but also ethanol, aviation fuel, renewable energy, bio‑based chemicals and other high‑value industrial outputs,” Kindiki remarked.
He added that research, innovation, and climate‑smart agriculture are being prioritized to make the sector more competitive and resilient amid changing weather patterns linked to climate change.
Kindiki also urged African governments and investors to make agriculture attractive to young people through technology, agribusiness innovation, and modern infrastructure. He stressed that sugarcane represents untapped potential for Africa’s industrial growth.
On global trade, the Deputy President called for a rules‑based system, noting that subsidies and trade barriers continue to distort sugar markets and disadvantage producer nations. Kenya, he said, supports fair and transparent arrangements that allow developing countries to compete on equal terms.
With reforms taking root and new frontiers opening in ethanol and green energy, Kenya’s sugar industry is positioning itself as a modern, integrated sector capable of driving rural transformation and contributing to sustainable economic growth.
By John Majau
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