- This ban is poised to protect domestic farmers and help stabilise the local sugar industry, which has been wobbly due to unchecked imports and poor management of millers.
- Kenya projects local sugar factories could produce over 800,000 metric tonnes in 2024, an uptick from the previous year.
- On average, Kenya consumes about 950,000 metric tonnes of sugar annually.
In a sweet deal fashioned to bolster local sugar producers, Kenya has imposed an immediate freeze on sugar imports from outside regional markets: The Common Market for Eastern and Southern Africa (COMESA) and the East African Community (EAC).
The decision comes at a time when East Africa’s largest economy is projecting a bumper harvest of sugarcane in its sugarbelt across Rift Valley, Nyanza and Western areas. This ban is poised to protect domestic farmers and help stabilize the local sugar industry, which for years has been wobbly due to unchecked imports and poor management of local millers.
Bumper sugar harvest in Kenya
Kenya’s sugar production has seen significant improvement, with projections indicating that local sugar factories could produce more than 800,000 metric tonnes in 2024. This figure marks an upward trend from previous years, where annual production averaged around 700,000 metric tonnes.
According to Andrew Karanja, the Cabinet Secretary for the Ministry of Agriculture and Livestock Development, the government’s decision not to extend the import window for sugar from countries outside COMESA and EAC was influenced by this optimistic outlook. In the season under review, Kenyan farmers, who are heavily dependent of rain fed agriculture, experienced favourable weather and also benefited from the government initiatives to supply subsidised fertilizer.
“The local sugar industry has shown resilience and improvement, and we expect a bumper harvest this year,” Dr. Karanja said in a statement released in Nairobi. “This move to limit sugar imports from outside the region will ensure that local farmers benefit from the favorable conditions.”
Farmers across the sugarcane-producing regions of Western Kenya have welcomed the decision, expressing optimism that the freeze on external imports will stabilize sugar prices and create more market opportunities for their produce.
Kenya’s sugar industry: A balancing act
Kenya’s sugar industry has long been a vital component of the economy, supporting hundreds of thousands of livelihoods, particularly in rural areas across the Rift Valley, Western, Nyanza and Coast counties. However, the country has historically struggled with balancing domestic production and imports to meet its annual consumption needs.
On average, Kenya consumes about 950,000 metric tonnes of sugar annually. This demand, combined with fluctuations in local production, has necessitated imports, primarily from countries within the COMESA and EAC blocs to plug persistent supply deficit.
In 2023, the country faced an unprecedented challenge due to the worst drought in 40 years that drastically reduced sugar output. To prevent a sharp increase in sugar prices, the government temporarily opened the import window to countries outside the regional markets COMESA and EAC. This measure provided a lifeline for consumers, but was met with opposition from local farmers, who feared it would undercut their profits.
“The drought of 2023 was a difficult period for sugarcane farmers,” Dr. Karanja noted. “To ensure that consumers were not priced out of the market, we had to allow external imports, but we are confident that this year’s bumper harvest will cover the deficit and allow us to refocus on regional trade.”
Sugar imports in Kenya: Trade protocols and safeguards
Kenya’s sugar imports are governed by trade protocols outlined in agreements with COMESA and EAC, two regional markets. Under these arrangements, Kenya benefits from preferential trade terms that facilitate the importation of sugar when local production falls short.
However, the country also faces certain restrictions, including the sugar safeguard agreement with COMESA, which allows Kenya to limit imports from member states to protect its domestic industry. These safeguards are due to expire in February 2025.
“Kenya remains committed to the trade protocols outlined in existing treaties,” Dr. Karanja stated. “But we must also ensure that our local farmers are not disadvantaged, and that is why these safeguards are so important.”
The halt on sugar imports from outside COMESA and EAC is seen as a temporary measure aimed at giving local farmers time to recover and strengthen their market position before the safeguards expire. The government is also investing in measures to enhance local production capacity, including capitation to modernize sugar factories and improving infrastructure in sugarcane-growing regions.
Tackling illegal sugar smuggling
While Kenya continues to protect its sugar industry through trade regulations, illegal sugar smuggling remains a persistent challenge. The country’s porous borders have made it difficult to fully control the inflow of illicit sugar, which often undermines local prices and hurts legitimate businesses.
To help address this, Dr. Karanja explained that the government has deployed security agencies to monitor key border points and curb the smuggling of illegal sugar into the country. The Ministry of Agriculture is working closely with other government agencies to ensure that the new import restrictions are not circumvented by unscrupulous traders, he said.
“We are taking all necessary steps to ensure that our borders are secure and that illegal sugar does not find its way into the market,” Karanja emphasized. “Our goal is to create a level playing field for local farmers and protect the integrity of the domestic sugar market.”
Read also: Sugar consumption in Kenya to Increase to 1.23 Million Tonnes
Farmers reap the benefits
The freeze on sugar imports from outside COMESA and EAC is a major victory for Kenyan sugarcane farmers, many of whom have struggled with low prices due to competition from cheaper imported sugar. With the ban in place, farmers are hopeful that they will be able to command better prices for their produce, leading to improved livelihoods and economic stability in sugar-growing regions.
For decades, Kenya’s sugar industry has been plagued by challenges, including inefficiencies in production and delayed payments to farmers. The government’s renewed focus on supporting local farmers and enhancing domestic production is expected to revive the industry and make it more competitive on both regional and global markets.
With the right investments and continued focus on improving production efficiency, Kenya’s sugar industry could soon become a powerhouse, not just in the region but across Africa. For now, farmers across the country are celebrating a much-needed victory, and the future of sugar in Kenya looks sweeter than ever.
