The Kenyan Government has reaffirmed its ban on sugar imports and frozen the issuance of new sugar import licences as the long-awaited elections for five regional grower directors to the Kenya Sugar Board were set for September 5, 2026, marking a major milestone towards fully operationalising the Board under the Sugar Act, 2024.
The announcements were made during a high-level consultative meeting convened by Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe at Kilimo House with sugar farmers, industry stakeholders and officials from the Kenya Sugar Board.
CS Kagwe reaffirmed the Government’s decision to halt sugar imports and directed that no new licences be issued for sugar importation, saying Kenya has now produced sufficient sugar to meet domestic demand without disrupting the local market.
“I have asked the Kenya Sugar Board to stop sugar imports. Henceforth, I do not want any licence issued for sugar imports. As at now, what we have produced is sufficient for the first time. We are going to ensure we do not mess up the internal market because of imports. We are not going to import sugar at the risk of the local industry,” the CS said.
How much imported sugar enters Kenya?
The Cabinet Secretary said sugar imports have declined significantly from about 210,000 metric tonnes last year to about 60,000 metric tonnes this year, attributing the decline in part to the KSh 40-per-kilogram excise duty introduced under the Finance Act, 2026, which has discouraged imports while safeguarding local producers.
He said the Government’s priority is now to protect local production as Kenya prepares to transition from a sugar-importing country to a sugar-exporting nation.
CS Kagwe also announced stricter licensing requirements for new sugar factories to address rampant cane poaching, saying investors seeking milling licences must demonstrate adequate nucleus estates and contracted outgrowers before approval.
“Before we licence a factory, we must know where the nucleus farm is and where the outgrowers are,” Kagwe said.
The Cabinet Secretary further assured farmers that Government is moving to clear the remaining historical arrears owed to cane farmers.
Out of nearly KSh2 billion owed by Government, only about KSh265 million remains outstanding.
“My happiest day will be when Government owes sugar farmers absolutely nothing,” Kagwe said, revealing that he had already engaged National Treasury Cabinet Secretary John Mbadi to facilitate payment of the remaining balance.
He also directed that concerns over delayed payments by some millers be addressed urgently after farmers complained that some factories continue accumulating fresh arrears despite improvements in the industry.
