Kenya’s sugarcane farmers and industry stakeholders remain divided over sweeping changes to agricultural funding proposed under the Crops Laws Amendment Bill, 2026, according to a report on Kahawa Tungu.
Stakeholders aired contrasting views during a public participation session before the National Assembly’s Departmental Committee on Agriculture and Livestock, chaired by Tigania West MP John Mutunga. Sponsored by Majority Leader Kimani Ichung’wah, the bill seeks to overhaul sector-specific agricultural institutions by consolidating the Agricultural Finance Corporation (AFC) and the Commodities Fund under a new entity—the Kenya Agribusiness Development Corporation Limited (KADCO)—anchored within the National Treasury.
Defending the reform, Mutunga explained that KADCO is designed to fix chronic underfunding in agriculture by uniting the resources of existing agencies rather than stripping the sector of support.
However, several industry leaders warned that the structural overhaul could create new hurdles.
Nick Oloo of the Kenya Sugar Manufacturers Association questioned redirecting Sugar Development Levy funds to KADCO, warning that it could erode transparency and undermine progress under the Sugar Act, 2024.
He recalled that reforms following the Crops Act, 2013, severely disrupted cane development, factory rehabilitation, and overall farmer support.
Meanwhile, Atiang Atyang of the Kenya Association of Sugarcane and Allied Products urged lawmakers to safeguard gains made under the Sugar Act, 2024, recalling how the sugar sector historically received a disproportionately small share of funds from the Agriculture and Food Authority and the Commodities Fund despite its massive scale.
Additionally, William Kopi, chairperson of the Butali Sugarcane Farmers Association, warned that altering the current financial model could strain relations between government, investors, and growers, ultimately hurting production if smallholders’ needs are ignored.
Conversely, some representatives welcomed the proposal. Michael Arum of the Sugar Campaign for Change endorsed the bill, arguing that the priority must be establishing a financial model that organizes smallholders and makes them creditworthy. He pointed to South Africa and Malawi, where similar models have successfully bolstered local sugar industries.
The Agriculture and Livestock Committee will evaluate all stakeholder submissions as public deliberations on the Crops Laws Amendment Bill, 2026, continue.
