Kenya is preparing for a major shift in its sugar sector strategy, with the government now looking at ethanol production from sugarcane as a way to reduce fuel costs, strengthen energy security and revive the struggling sugar industry.
The new direction emerged during the 68th International Sugar Organisation Seminar held in Diani on Tuesday, where Kenyan leaders pointed to Brazil’s successful sugarcane-to-ethanol model as a blueprint for transforming the country’s sugar economy, People Daily reported.
Deputy President Kithure Kindiki and Agriculture Cabinet Secretary Mutahi Kagwe indicated that the government is preparing policy and legal reforms to support large-scale ethanol production from sugarcane.
The conference heard how Brazil has used ethanol-blended fuel over the past five decades to reduce dependence on imported oil, stabilise fuel prices and strengthen its energy security. Presentation slides at the seminar showed that ethanol-based fuel in Brazil remains significantly cheaper than conventional gasoline, with the country having replaced more than four billion barrels of gasoline with ethanol.
Mr. Kindiki said the Kenyan government would review the Sugar Act and existing regulations to formally integrate ethanol production into the country’s economic and legal framework. He added that the government would work with the Energy and Petroleum Regulatory Authority to develop regulations for fuel blending.
The move marks Kenya’s strongest indication yet that ethanol could become part of the country’s long-term energy strategy as global oil prices remain volatile and pressure grows on foreign exchange reserves.
Speaking at the seminar, Mr. Kagwe said Kenya could no longer focus only on sugar production while ignoring other opportunities within the sugarcane value chain. He stressed the need to diversify into ethanol and other sugar by-products to make the industry sustainable.
He said the government had focused on increasing farmers’ incomes but warned that the global sugar industry had concentrated too heavily on sugar trade while neglecting the welfare of farmers and workers who support the sector.
In remarks reflecting the government’s changing approach, Mr. Kagwe said Kenya wants sugar to become “a by-product” rather than the only product derived from sugarcane.
The comments signal a significant policy shift from decades of emphasis on sugar manufacturing despite persistent financial losses, ageing factories, mounting debt and delayed payments to farmers in state-owned sugar mills.
Kenya is now studying Brazil’s integrated sugarcane industry, where ethanol production, electricity cogeneration, industrial alcohol and other bio-products have turned sugarcane into a major industrial and energy resource.
According to Mr. Kagwe, reforms introduced under the Sugar Act 2024 are already laying the foundation for industrial modernisation through investment in ethanol production, cogeneration and value addition.
The government also linked ethanol expansion to climate resilience and cleaner energy goals, arguing that locally produced biofuel could reduce dependence on imported petroleum while creating stable markets for farmers.
Kenya’s sugar industry supports more than six million people directly and indirectly, especially in western Kenya where local economies depend heavily on sugarcane farming.
Officials believe that expanding ethanol production could not only reshape the country’s energy sector but also revive the sugar industry by creating new revenue streams and reducing reliance on conventional sugar production alone.
