Kenya’s sugar production rises 56 per cent as prices fall by Sh32 for 2kg

Kenya Sugar Board CEO Jude Chesire (left) during an ISO meeting. /COURTESYKenya’s sugar production increased by 56.7 per cent in the first nine months of 2026, easing pressure on domestic supply as retail prices fell by an equivalent of Sh32 for every two kilogrammes compared with the same period last year.

Data from the Kenya Sugar Board shows that the country produced 690,521 tonnes of sugar between January and September, up from 440,652 tonnes during a similar period in 2025.

The increase of 249,869 tonnes came alongside a reduction in imports, suggesting that local factories are meeting a larger share of national demand.

The improved production comes as Kenya takes on a more prominent role in the international sugar industry, with Kenya Sugar Board chief executive Jude Chesire helping resolve a leadership stalemate at the International Sugar Organization (ISO), whose council he chairs.

Chesire initiated consultations among member states after three rounds of voting failed to produce a candidate with the required two-thirds majority for the organisation’s executive director position.

The council subsequently agreed that Mauritius’ Devesh Devani would serve the first four-year term, followed by Brazil’s Eduardo Leão de Sousa for the succeeding four years.

The agreement followed inconclusive voting on September 22, 2026, placing Kenya at the centre of efforts to secure consensus among countries involved in the global sugar trade.

Chesire said the position gives Kenya an opportunity to engage other sugar producing and consuming countries on export markets, investment in processing and the development of alternative products such as ethanol.

“Kenya by next year will start building surpluses for exports and requires such a platform to create new markets,” he said.

Kenya is projecting sugar production of 900,000 tonnes against an estimated annual demand of one million tonnes, compared with production of about 650,000 tonnes last year.

The increase in output is supported by higher cane deliveries and processing. Factories processed 7.76 million tonnes of sugarcane between January and September, compared with 4.97 million tonnes during the same period in 2025, representing a 56.2 per cent increase.

For consumers, the growth in local supply coincided with lower retail prices.

The national average retail price of sugar stood at Sh155 per kilogramme in September 2026, down from Sh171 in September 2025.

At those average prices, a two-kilogramme purchase would cost about Sh310, compared with Sh342 a year earlier, representing a difference of Sh32.

The reduction, however, may vary depending on the retailer and location.

Kenya also reduced its overall sugar imports during the nine-month period, bringing in 251,690 tonnes compared with 364,486 tonnes in the corresponding period last year.

This was a decline of 112,796 tonnes, or about 31 per cent.

Imports of mill white and brown sugar recorded the sharpest fall, dropping by about 71 per cent to 65,845 tonnes from 226,730 tonnes.

However, refined white sugar imports increased to 158,006 tonnes from 137,756 tonnes, pointing to continued reliance on imported sugar in some categories even as domestic production expands.

Local millers’ cumulative sales rose by 45.6 per cent to 635,672 tonnes, compared with 436,593 tonnes in the first nine months of 2025.

Sugar stocks at the end of September stood at 70,773 tonnes, up from 14,033 tonnes recorded at the same time last year, providing a larger inventory buffer.

The higher volumes processed by factories also mean more cane was handled during the period, although the impact on farmers’ earnings will depend on production costs, cane prices, harvesting arrangements and timely payments.

Beyond the domestic market, Kenya is looking to use its growing production capacity to develop export opportunities.

The country exported 315.57 tonnes of sugar between January and September 2026, compared with 244.80 tonnes during the same period last year.

The volumes remain modest, meaning sustained export growth will depend on the country producing enough to meet domestic demand while maintaining competitive prices and reliable supply.

Chesire said Kenya was also looking to strengthen cooperation with established sugar producers, particularly Brazil, on biofuels and ethanol production.

“Conversations are now building up towards biofuels and ethanol production,” he said, adding that Kenya had started the process and was seeking to benchmark its plans against countries with established industries.

The discussions come as local factories record increased molasses production, creating opportunities to explore additional uses for the by-product of sugar manufacturing.

National molasses production reached 307,617 tonnes between January and September, a 62.1 per cent increase from 189,809 tonnes during the same period last year.

Closing stocks rose to 65,384 tonnes from 12,735 tonnes at the end of September 2025.

The growing volumes could provide a basis for investment in ethanol processing, although this would require additional capacity, appropriate technology and dependable markets.

Kenya’s increased production and reduced overall imports mark a shift in the domestic supply position, but the country remains below its projected annual demand.

Chesire’s role at the ISO offers the country a platform to pursue discussions on markets, technology and investment as it seeks to turn higher production into a more sustainable sugar industry.