By Ken Muthomi - Reporter
Kenya, 25 April 2026 - The Ministry of Agriculture has revised the minimum sugarcane price from KSh 5,750 ($44.46) to KSh 5,500 ($42.53) per tonne, in a move aimed at balancing farmer earnings and shifting market conditions.
In a directive issued to 15 heads of sugar companies, the Kenya Sugar Board Chief Executive Officer, Jude Chesire, said that all millers are to adopt the new prices, effective immediately, and ensure the swift payment to farmers.
The decision was made after the 4th Interim Sugarcane Pricing Committee, which reviewed prevailing market dynamics and consulted key industry stakeholders.
“We refer to the Fifth and Fourth meeting of the interim sugarcane pricing committee held virtually on 24 April 2026 and physically on 17 April 2026, respectively, and subsequent extensive consultations on Sugarcane Prices,” Chesire said.
“This is therefore to notify you that a new sugarcane price of KSh 5,500 ($42.53) per tonne has been approved effective immediately,” he added.
The agriculture ministry indicated that some millers had initially pushed for a deeper cut to KSh 5,000 ($38.66) per tonne, citing rising production costs and declining sugar prices that have squeezed profit margins.
However, the government settled on KSh 5,500 ($42.53) per tonne to cushion farmers from a sharper reduction while responding to the millers' concerns.
The review comes at a time when Kenya has recorded improved sugar production in 2026, driven by increased cane supply and higher factory output, as well as the reopening of four previously dormant state-owned sugar factories, factors that have contributed to a decline in prices.
“With higher output, basic economic forces of demand and supply have contributed to a decline in sugar prices. A 50-kilogramme bag of sugar, which previously retailed at about KSh 7,000 ($54.13) has dropped to between KSh 6,000 ($46.40) and KSh 6,100 ($47.17), prompting a review of raw material pricing,” the ministry stated.
“Industry stakeholders warn that maintaining high cane prices while sugar prices fall could strain millers’ operations and threaten sustainability in the sector,” it added.
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