Billionaire Rai family has tightened their grip on the sugar market, with the latest figures indicating that they controlled nearly half of the sales in three months to June.
Sugar Directorate data shows the four firms owned by the Rai family controlled 40 percent of the total production in the year to July, extending control in the sugar market.
The sugar industry in Kenya has been dominated by a handful of players, with the Rai family's enterprises leading the charge.
The latest data from the directorate reveal that four factories under the Rai family's portfolio--West Kenya, Sukari, Naitiri, and Olepito--commanded a significant share of the market.
These factories collectively produced 86,725 tonnes of sugar between May and July 2024, representing 40.22 percent of the total 215,000 that was produced over this period.
West Kenya Sugar Company, the largest of the four, alone accounted for nearly half of the Rai family's contribution, producing 41,470 tonnes in the three months.
This dominance is attributed to operation efficiency of the factory, which has consistently led the market in production volumes.
Sukari Industries and Naitiri Sugar Company also made substantial contributions, with outputs of 14,631 and 26,654 tonnes, respectively, while the smallest of the four, Olepito Sugar Company, added 3,970 tonnes to the total.
The combined production from these four factories has given the Rai family a commanding influence over the sugar market, enabling them to dictate pricing and supply dynamics to a considerable extent.
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Their market share dwarfs that of other key players, such as Kibos Sugar and Allied Industries, which produced 28,541 tonnes during the same period, accounting for roughly 13 percent of the total production.
Butali Sugar Mills followed with a production of 22,051 tonnes, capturing about 10 percent of the market.
Meanwhile, other factories like Mumias Sugar, once a giant in the industry, have struggled to regain their footing, contributing 8,982 tonnes over the three months--just over 4 percent of the total.
South Nyanza (Sony) Sugar Company, another notable player, managed to produce 9,413 tonnes, also representing about 4 percent of the market share.
The remaining factories, including Nzoia Sugar Company, Chemelil Sugar Company, and Transmara Sugar Company, collectively accounted for the remaining percentage of production, highlighting the fragmented yet Rai-dominated nature of the sugar industry in Kenya.
The Rai family's substantial control over the sugar industry has before raised questions about market competition and the potential for monopolistic practices.
With nearly half of the country's sugar production under their belt, the Rai family's enterprises have not only outpaced their competitors but have also positioned themselves as the central players in the industry, influencing everything from sugar prices to distribution networks.
