Kenya Raises Sugarcane Price to Ksh5,300 a Tonne

Kenya’s Sugar Pricing Committee has raised the minimum sugarcane price from Ksh5,000 per tonne to Ksh5,300, effective February 10, 2025, aiming to support farmers and ensure timely payments.

The decision was made during the latest review by the 4th Interim Sugarcane Pricing Committee, which periodically assesses sugarcane prices to ensure equitable returns for both growers and millers.

The committee considers prevailing sugar prices and ex-factory rates when determining the cost of sugarcane.

The committee comprises representatives from various entities, including the Agriculture and Food Authority (AFA), the Ministry of Agriculture, farmers, millers, and sugar-producing counties.

The adjustment comes as the retail price of sugar remains steady following a previous decline attributed to increased local production.

The Agriculture and Food Authority permitted sugar factories to fully resume operations last December after a four-month milling ban imposed in July to allow the crop to mature.

Currently, a two-kilogramme packet of sugar is retailing at Ksh420, up from Ksh400 in August  the last year but remains within reasonable range.

The price drop followed government measures to boost imports and improve domestic milling efficiency.  

The global sugar market has also experienced fluctuations, partly due to India, a leading sugar producer, imposing export restrictions to safeguard its domestic stocks amid a worldwide shortage that had driven up prices.

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