(Nairobi) – The Kenyan government has officially reinstated the Kenya Sugar Board, aiming to address numerous problems within the struggling sugar sector. This development follows the enactment of the Sugar Bill 2022, which is expected to create substantial reforms to help the industry recover.
Previously, the Kenya Sugar Board’s responsibilities were absorbed by the Sugar Directorate under the Agriculture and Food Authority (AFA) through the Crops Act of 2013. However, the industry’s challenges, including delayed payments to farmers, high production costs, poor management, and ineffective control of imports and exports, persisted. These issues have continued to strain farmers and reduce Kenya’s sugar output.
The reestablished Kenya Sugar Board is set to regulate, develop, and promote the sugar sector. It will also coordinate with various stakeholders, engage in policymaking, and work alongside government and research institutions. The new law provides licensing guidelines for both sugar processors and small-scale jaggery mills. It also sets requirements for sugar importers and establishes an arbitration tribunal to settle disputes among farmers, millers, and other stakeholders.
Additional responsibilities for the Board include overseeing trade, advising sugar growers, regulating sugar pricing, licensing mills, and monitoring the market. The Board will appoint qualified crop inspectors to enforce sector regulations, aiming to improve compliance and efficiency across the industry.
The Sugar Board’s funding will come from annual allocations by the National Assembly and a Development Levy, capped at 4% of the domestic sugar value and the Cost, Insurance, and Freight (CIF) value of imported sugar. Funds will be allocated as follows:
| Funding Allocation | Percentage |
|---|---|
| Factory Development | 15% |
| Research Initiatives | 15% |
| Cane Productivity Programs | 40% |
| Infrastructure in Sugarcane-Producing Regions | 15% |
| Board Administration | 10% |
| Sugarcane Farmers’ Organizations | 5% |
The reestablished Board will also oversee the Kenya Sugar Research and Training Institute. The Institute, led by a nine-member Board chaired by an appointee from the Cabinet Secretary, will focus on advancing research, innovation, and technology access for the sugar industry.
According to the Ministry of Agriculture, the sugar sector sustains the livelihoods of at least 17% of Kenya’s population, especially in the Nyanza, Rift Valley, Western, and Coast regions. Currently, the industry operates at about 70% of its installed processing capacity, producing roughly 1.3 million metric tonnes annually. With improved efficiency, it could potentially meet the country’s entire sugar demand.