Govt Approves Sugarcane Price Hike: Farmers Get Sh5,750 per Tonne

In Summary

• Government increases sugarcane price by Sh250 to Sh5,750 per tonne.
• New price, follows April–June market review.
• Second price hike in 2025, totaling Sh500 per tonne since April.
• Aims to improve farmer earnings and revive sugar industry.
• Millers directed to comply and ensure timely payments.
• Farmers welcome move but seek solutions for delayed payments.

The Kenyan government has raised the minimum price of sugarcane by Sh250, setting it at Sh5,750 per tonne effective July 21, 2025, to enhance farmer incomes and revitalize the sugar industry. Agriculture Principal Secretary Dr. Kipronoh Ronoh announced the decision, citing a review of ex-factory sugar prices from April to June 2025 by the Interim Sugarcane Pricing Committee.

The price hike, the second in 2025, follows a May increase from Sh5,300 to Sh5,500 per tonne, bringing the total increment to Sh500, or a 9.5% rise since April. “This adjustment ensures fair compensation for farmers, reflecting rising market prices,” Ronoh said in a directive to millers, urging compliance and timely payments to growers. The directive targets all 15 licensed millers, including Kibos Sugar, Nzoia Sugar, Chemelil, Muhoroni, and Mumias Sugar.

John Omondi Oyoo, a sugarcane farmer in Migori, welcomed the increase. “This will help us cover rising costs and invest in better practices, but millers must pay on time,” he said. Delayed payments remain a challenge, with some farmers waiting months, impacting their ability to replant.

The price revision aligns with broader reforms, including the leasing of state-owned mills like Nzoia and Chemelil to private firms for 30 years to boost efficiency. Agriculture CS Mutahi Kagwe noted, “These changes aim to make the sugar sector sustainable while improving livelihoods in western Kenya.” The industry, a key economic driver in counties like Kakamega and Busia, has faced cheap imports and milling inefficiencies.

The Ministry of Agriculture emphasized that the adjustment, based on a formula factoring cane weight and sugar prices, will enhance financial stability for farmers ahead of peak harvests. The government plans to monitor compliance closely and continue price reviews to ensure fairness.