Nairobi — Sugar prices are expected to remain stable, the regulator has said, despite high demand for the commodity coupled with production challenges and ongoing reforms in the sugar sector.
In a statement, the Kenya Sugar Board (KSB) said the country's sugar supply remains secure, even as demand continues to rise due to population growth, expanding urban consumption and increased industrial use.
Data from KSB shows that sugar production in Kenya stood at 613,000 metric tonnes (MT) in 2025, meeting only 61 percent of national demand estimated at 1.2 million MT. This marked a decline from the historic 815,000 MT recorded in 2024, representing a 25 percent drop that the regulator said was anticipated as the industry entered a major reform phase.
"Much of the mature cane was harvested in 2024, leading to high production that year. In 2025, a significant portion of cane was still in developmental stages and could not be harvested. This necessitated the temporary closure of seven sugar factories in the Lower and Upper Western regions to allow the cane to reach optimal maturity, ensuring higher sucrose content and protecting farmers' future earnings," KSB said.
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It added that four state-owned sugar factories were initially closed to facilitate leasing to private investors. Following the handover, the factories underwent extensive renovations and rehabilitation worth Sh12.5 billion, resulting in about nine months of reduced milling capacity. Kwale Sugar also remained non-operational during 2025.
"These measures, though temporarily limiting output, were essential to modernise the industry and secure reliable production for the future," the Board said.
KSB noted that the government and industry regulators have put in place market stabilisation measures to ensure sugar remains available, prices stay predictable and consumers are protected from artificial shortages and speculation, even as production recovers and dry conditions persist into early 2026.
"Farmers remain at the centre of the recovery strategy. Cane maturity timelines are being respected, and the Sh1.2 billion Sugar Development Levy-funded programmes are set to accelerate cane development in 2026, including expansion of cultivation areas and the introduction of early-maturing varieties from the Sugar Research Institute," it said.
"Combined with mill rehabilitation, these measures are improving payment reliability, boosting yields and setting the stage for significantly higher production. Millions of tonnes of cane are already in the ground, supported by millers, with harvesting and milling projected to resume strongly from October-November 2026, marking the beginning of a sustained rebound in domestic production."
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