The Sugar Act, which was passed in November 2024, has been backed by leading private sugar millers.
The new legislation, which is championed by President William Ruto’s administration, aims to solve key challenges plaguing the Kenyan sugar industry including declining productivity, cheap imports and outdated policies.
Millers said that the reinstatement of Kenya Sugar Board, Sugar Development Levy and a Sugar Research and Training Institute will revitalise the once vibrant sector whose fortunes have been dwindling.
"President Ruto's emphasis on reforming the agricultural sector aligns perfectly with the Act's goals of achieving food security, enhancing productivity, and reducing import dependence," Kwale Sugar Company Limited Kiscol said in a statement.
The firm noted that the sugar industry, with its potential to create jobs, is central to this agenda.
Mauritian-owned sugar mills Kiscol and Transmara Sugar Company Ltd exemplify the modern and sustainable practices envisioned by the Act.
Kiscol’s state-of-the-art 3,300-tonnes-per-day mill, 5,000-hectare estate, and investments in efficient processing, water conservation, and biomass energy align with the Act's focus on innovation and sustainability.
"Kiscol embodies the principles of innovation and modernisation emphasised by the Sugar Act," the company said.
Additionally, it noted that its out-grower programme, which is empowering over 1,200 local farmers, reflects the government's commitment to rural development and poverty reduction.
“By providing farmers with inputs, training, and guaranteed markets, Kiscol contributes to improved livelihoods and regional food security,” it said.
The Act also addresses the issue of cheap imports, a major threat to local producers. Kiscol, with its focus on efficiency and quality, believes it is well-positioned to compete globally and contribute to Kenya's sugar exports.
"The President's pledge to curb cheap imports, stabilise sugar prices, and protect local producers complements Kiscol’s efforts to build a competitive, resilient, and sustainable sugar industry," the company said.
The Sugar Act, enacted last year aims to revitalize the sugar sector. It addresses challenges that have crippled the industry, a vital source of income for many farmers.
"These measures aim to strengthen the industry by boosting production, improving milling efficiency, aligning capacity with cane supply, promoting value addition, and providing crucial funding for all stakeholders," said KISCOL.
The Kenya Sugar Board, under the new law, will regulate, develop, and promote the sugar industry. It will coordinate stakeholders, participate in policy-making, collaborate with research institutions, oversee sugar trade, advise growers, regulate pricing, license mills, conduct market surveillance, and appoint crop inspectors.
Structured funding for the Board comes from National Assembly allocations and a Sugar Development Levy capped at 4 per cent of domestic sugar value and CIF of imported sugar.
Allocations are divided into 15 per cent for factory development, 15 per cent for research, 40 per cent for cane productivity, 15 per cent for infrastructure in sugarcane regions, 10 per cent for Board administration, and 5 per cent for sugarcane farmers' organsations.
The Act establishes a 9-member Kenya Sugar Research and Training Institute Board, chaired by a Cabinet Secretary appointee, to advance research, innovation, and access to sugar technologies.
Additionally, a five-member Sugar Arbitration Tribunal, chaired by a judge, will be established for dispute resolution within 90 days, with further appeals allowed.
