Cane farmers hope for sweet success in new sugar law
A farmer harvests sugarcane at his farm in Koru, Kisumu County.
What you need to know:
- The Bill provides for the re-establishment of the Kenya Sugar Board, a sugar development levy on domestic sugar, allocation of 30 percent for factory development and rehabilitation, and research and training at the Kenya Sugar Research and Training Institute.
- Farmers are optimistic that the establishment of the Kenya Sugar Board Research and Training Institute will advance research, innovation and access to sugar technologies.
Sugarcane farmers from Western Kenya are celebrating the signing into law of the Sugar Bill, 2022 by President William Ruto hoping that this will enhance regulations within the sector to benefit them.
The Bill provides for the re-establishment of the Kenya Sugar Board, a sugar development levy on domestic sugar, allocation of 30 percent for factory development and rehabilitation, and research and training at the Kenya Sugar Research and Training Institute.
The Kenya Sugar Board will be empowered to regulate, develop, and promote the sugar industry, coordinate stakeholders, participate in policy-making, and collaborate with government and research institutions.
The Board will also be charged with overseeing the sugar trade, advising cane growers, regulating pricing, licensing mills and conducting market surveillance, in addition to appointing qualified crop inspectors to enforce regulations within the sector.
Structured funding for the Kenya Sugar Board will come from the National Assembly allocations and a Sugar Development Levy, capped at four percent of the domestic sugar value and the Cost, Insurance and Freight (CIF) of imported sugar.
The farmers are optimistic that the establishment of the Kenya Sugar Board Research and Training Institute will advance research, innovation and access to sugar technologies.
These measures are set to strengthen the industry by boosting production, enhancing milling efficiency, aligning capacity with cane supply, promoting value addition, and providing critical funding to benefit all stakeholders.
In the 30 percent allocation, 40 percent of the funds will support cane development and productivity enhancement, while 15 percent will be directed to sugar-producing regions for infrastructural development based on production capacity.
Members of Parliament (MPs) successfully resolved a prolonged deadlock concerning the Sugar Bill, 2022, a significant piece of legislation that aims at augmenting regulations within the sugar sector thus paving the way for the reforms.
The Bill was co-authored by Navakholo MP Emmanuel Wangwe and Bungoma Senator Wafula Wakoli.
Farmers drawn from Kakamega, Busia and Bungoma counties said the law will pave the way for crucial reforms to be implemented within the sugar sector that will benefit cane growers and millers.
Mr Henry Onzee, a contracted farmer with Mumias Sugar Company, Ms Monica Mungala, a farmer from Busia Sugar Industry, contracted farmer Simon Oduki and Gregory Nabukwesi, a farmer from Naitiri, said the reintroduction of the Sugar Board would cushion sugarcane farmers.
The new board will be mandated with the responsibilities of regulating, developing, and promoting the sugar industry, as well as ensuring equitable access to industry benefits for all stakeholders.
“Once the Sugar Board is established, it will oversee the industry and this means that sugarcane will no longer be classified as a scheduled crop under the Agriculture and Food Authority (AFA) and this will now give the crop special attention,” Mr Onzee said.
Last month, a joint mediation committee that consisted of the Senate and National Assembly members was formed to address the impasse surrounding the Bill.
Differences over regulatory roles, pricing mechanisms, and the need for improved protection of farmers from exploitation by millers and traders were discussed.
Mr Wakoli said: “Today marks a historic milestone for our sugar sector with President Ruto's signing of the Sugar Bill into law. As a co-author of this transformative legislation, I am deeply grateful to witness this moment that will revolutionise the lives of over 14 million Kenyans across the Lake Region Economic Bloc. This law reinstates the Kenya Sugar Board with robust regulatory powers, bringing much-needed order to our sugar sector.”
“The introduction of zoning will end cane poaching and encourage millers to invest confidently in their farmers. I particularly commend the enhanced role of county governments in providing extension services and supporting farmer cooperatives. This is a lifeline for our cane farmers and the entire sugar sector ecosystem,” added Mr Wakoli.
He assured farmers who have endured challenges over the years that the law represents their resilience and hope for a bright future, adding that stakeholders within Kenya's sugar sector will restore the industry to its rightful place as a key driver of the country’s agricultural economy.
The law is expected to revitalise the sugar industry to ensure local millers meet the domestic demand and generate a surplus for export. As a result, it would enhance their livelihoods.
This comes amid wrangles between millers arising out of poaching and harvesting of immature cane, threatening the closing of the factories if action is not taken.
Mr Nabukwesi blamed AFA for not doing much to help the farmers to reap from their crops.
“Each miller is accusing each other of poaching. This means there is no data on the ground to establish which miller is stretching out to reap where they have not sown but AFA has failed to penalise errant millers,” he said.
Mr Nabukwesi claimed the poaching menace had contributed to the decline of sugarcane in the region, leading to an increase in sugar imports.
Mr Wakoli said the Sugar Board will control imports to safeguard farmers. “Cane poaching, which has long plagued our sector, is another critical issue that this new law effectively addresses,” he said.
Cane poaching has been a practice that has hit the sector hard with major sugar firms involved being Mumias, West Kenya and Nzoia.
The sugar industry remains a crucial component of the Kenyan economy, particularly in the western region, where it supports over 400,000 small-scale farmers. The successful passage of the Bill will mark a significant step forward for stakeholders in the industry.
The new law will address the challenges that have crippled the once vibrant and profitable industry, a vital source of livelihood for many farmers.
National Assembly Speaker Moses Wetang’ula said that with the law in place, a framework for the running of the sugar industry will be implemented to ensure the farmers, sugar factories and the country benefit from their efforts.
“Some of the areas the new law will address are the increased costs of sugar production, declining land acreage under sugar, lack of markets for sugar, failure to control imports and exports of sugar, among others,” he said.
Mr Wetang’ula said the Kenya Sugar Board will comprise 14 members who will include representation from farmers, millers, government agencies and the Council of County Governors.
