Source: The Star
Writer: Felix Kipkemoi
President William Ruto has outlined Kenya’s plans to become a major sugar exporter by 2027, citing ongoing efforts to revitalize the sugar sector. Key initiatives include writing off KSh 117 billion in debts, settling KSh 1.7 billion in farmers’ arrears, and distributing KSh 150 million in bonus payments to sugarcane farmers at Mumias Sugar Company. Kenya produced a record 832,000 metric tons of sugar last year, signaling progress toward surplus production and regional exports.
The government has enacted the Sugar Act 2024, which introduces sugarcane catchment areas, synchronizes milling operations, and targets cartel elimination. Subsidized fertilizers, now increased to 1 million bags, aim to boost productivity and farmer incomes. Farmers will also benefit from payments tied to cane quality through cane testing units, ensuring fairness and transparency.
President Ruto emphasized the model’s scalability to other public sugar companies and called for further collaboration between the Ministry of Agriculture and the Sugar Research Board to optimize fertilizer and enhance productivity.
OPINION: What strategies should Kenya implement to sustain the momentum in sugar sector reforms while addressing challenges like inefficiency and cartel operations?
RESPONSE:
- Streamline Farmer Incentive Models: Expand bonus payments tied to both cane quantity and quality across all mills, ensuring fairness and incentivizing high-yield, high-quality production.
- Enhance Research and Development (R&D): Strengthen collaborations with the Sugar Research Board to develop region-specific fertilizers, resilient cane varieties, and efficient farming techniques.
- Modernize Mill Operations: Invest in upgrading milling technologies and infrastructure to reduce losses and improve efficiency, making Kenyan sugar competitive in export markets.
- Implement Robust Anti-Corruption Measures: Enforce strict regulations and monitoring to eliminate cartels and ensure transparency throughout the sugar value chain.
- Foster Regional Export Partnerships: Leverage trade agreements within COMESA and the African Continental Free Trade Area (AfCFTA) to secure regional markets for surplus sugar.