Kenya Freezes New Sugar Import Licences as Grower Elections Set to Complete Sugar Board

The government has reaffirmed its ban on sugar imports and suspended the issuance of new import licenses, signaling a stronger commitment to protecting local producers as Kenya moves closer to fully operationalizing the Kenya Sugar Board under the Sugar Act, 2024.

The announcement was made by Cabinet Secretary for Agriculture and Livestock Development Sen. Mutahi Kagwe during a high-level consultative meeting at Kilimo House attended by sugar farmers, industry stakeholders, and officials from the Kenya Sugar Board.

Kagwe said Kenya’s sugar production has reached a level capable of meeting domestic demand, making additional imports unnecessary and potentially harmful to the local industry.

“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,” he said.

According to the Cabinet Secretary, sugar imports have declined significantly from about 210,000 metric tonnes last year to approximately 60,000 metric tonnes this year. He attributed the reduction in part to the KSh40 per kilogram excise duty introduced under the Finance Act, 2026, which has discouraged imports while creating a more competitive environment for locally produced sugar.

Kagwe said the government’s long-term objective is to transform Kenya from a net sugar importer into a sugar-exporting country by strengthening domestic production and supporting investments across the value chain.

To further safeguard the industry, the Cabinet Secretary announced tighter licensing requirements for new sugar mills. Investors seeking licenses will now be required to demonstrate ownership of adequate nucleus estates and sufficient contracted outgrowers before approval is granted.

“Before we license a factory, we must know where the nucleus farm is and where the outgrowers are,” Kagwe said, adding that the measure is intended to curb cane poaching, which has remained a persistent challenge in many sugar-growing regions.

The meeting also confirmed that elections for five regional grower representatives to the Kenya Sugar Board will be held on September 5, 2026, completing the board’s membership as required under the Sugar Act, 2024.

Harun Khator, Chairperson of the Kenya Sugar Board Grower Directors Election Committee and Secretary Administration in the State Department for Livestock Development, officially announced the election date after consultations with stakeholders.

“The powers have been vested in my office to declare these elections. I therefore officially announce that the elections for the five grower directors representing the five sugar-growing regions will be held on Saturday, September 5, 2026. We shall work with all stakeholders to ensure the elections are conducted in accordance with the provisions of the law,” Khator said.

Kenya Sugar Board Chief Executive Officer Jude Chesire said the election of the five grower directors is necessary to fully constitute the Board, enabling it to make key policy and financial decisions, including those relating to the administration of the Sugar Development Levy.

Kagwe also assured farmers that the government is close to clearing long-standing payments owed to sugarcane growers. He revealed that of the nearly KSh2 billion in historical arrears, only about KSh265 million remains outstanding after substantial payments were made.

“My happiest day will be when the government owes sugar farmers absolutely nothing,” he said, adding that discussions with the National Treasury are ongoing to facilitate settlement of the remaining balance.

Farmer organizations welcomed the planned elections, describing them as a crucial step in implementing the Sugar Act, 2024, and ensuring growers have a direct voice in the management of the sector. They maintained that the five grower representatives should be elected democratically rather than nominated, saying the move would strengthen accountability and restore farmers’ confidence in the industry’s governance.

The latest reforms form part of the government’s broader strategy to revitalize Kenya’s sugar sector through stronger regulation, improved farmer representation, enhanced local production, and reduced dependence on imported sugar.