The Federation of Kenya Employees (FKE) has urged the government to prioritize regulatory reforms, harness technology for agricultural progress, and foster a favorable business environment to resuscitate the ailing sugar sector in Western Kenya.
FKE’s Chief Executive Officer, Mrs. Jacqueline Mugo, observed that despite the challenges facing the sugar sector, it holds a crucial position in Kenya’s economy, emphasizing its substantial impact on related industries such as confectionery and beverages, and its role as a primary source of employment for millions of Kenyans.
”According to the State Department for Trade’s 2023 data, over 8 million Kenyans depend directly or indirectly on the sugar industry. However, the sector is currently facing challenges, notably significant price drops that adversely impact sugarcane farmers and undermine the competitiveness of local manufacturing.'”Mrs. Mugo stated.
Addressing the 43rd Annual General Meeting of FKE Western Kenya Branch in Kisumu, she emphasized the need to adopt high-yielding sugarcane varieties with shorter maturation periods, aiming to reduce the current 24-month timeframe.
“Sugarcane farmers should consider adopting high-yielding varieties that mature quickly, aiming to avoid maturation periods exceeding 24 months. This will help mitigate perennial cane shortages,” said the executive director.
She highlighted the significance of regulatory reforms, such as passing the sugar bill in parliament, to foster a favorable environment for sugar millers and address stakeholders’ interests, emphasizing the need for political goodwill.
“Goodwill is needed from the government, particularly from parliamentarians, to pass the sugar bill currently in parliament into law while being cognizant of the interests of key stakeholders in the sector,” she said.
In 2023, Kenya granted duty-free access for up to 100,000 metric tons of sugar from non-COMESA countries, resulting in heightened imports from nontraditional sources such as Thailand.
The surge in imports led to a significant drop in sugar tonnage rates, plummeting from sh 6,050 to Sh 5,100 per tonnage. This posed challenges for both farmers and consumers.
Furthermore, Kenya’s sugar production declined to 650,000 metric tons in the financial year 2024, attributed to lower harvests resulting from premature harvesting in the previous year.
On the contrary, consumption is projected to marginally increase to 1.16 million metric tons, reflecting population growth.
One critical factor impacting the sector’s productivity is the low yield per hectare compared to countries such as Zambia and Malawi, which is attributed to various factors, including irrigation methods, climate conditions, and maturation periods.
