Announcing the ...

Kenya Sugar Industry Performance – January 2025

The Kenya Sugar Board's January 2025 newsletter provides an overview of key industry performance indicators, focusing on production, pricing, trade, and global market trends. Below is a summary of the key highlights:

1. Sugarcane Milled and Sugar Production

• Sugarcane Milled: Increased by 30% to 827,482 MT in January 2025, up from 637,276 MT in December 2024.
• Sugar Production:
  • Made: Increased by 22% to 73,019 MT, up from 59,857 MT in December 2024.
  • Bagged: Increased by 28% to 73,201 MT, up from 57,152 MT in December 2024.
• Sugar Sales: Increased by 9% to 74,000 MT, up from 67,598 MT in December 2024.
• Closing Stocks: Dropped slightly to 9,653 MT at the end of January, down from 10,605 MT in December 2024.

2. Molasses Production, Sales, and Stocks

• Molasses Production: Increased by 8% to 30,204 MT, up from 27,875 MT in December 2024.
• Molasses Sales: Dropped by 4% to 32,328 MT, down from 33,552 MT in December 2024.

3. Local Sugar Market

Pricing Trends

• Ex-Factory Prices: Increased by 5% to Ksh 6,569 per 50kg bag, up from Ksh 6,233 in December 2024.
• Wholesale Prices: Rose by 9% to Ksh 7,177 per 50kg bag, up from Ksh 6,568 in December 2024.
• Retail Prices: Averaged Ksh 157 per kilo, up from Ksh 149 per kilo in December 2024.

Sugarcane Pricing

• The sugarcane price remained unchanged at Ksh 5,000 per tonne in January 2025.
• Millers continued to adhere to the minimum recommended price, as per the August 2024 review by the Sugarcane Pricing Committee.

4. Foreign Trade

Sugar Imports

• Total Imports: Increased significantly to 32,517 MT, up from 14,163 MT in December 2024.
  • Breakdown:
    • Mill White/Brown Sugar: 10,380 MT
    • White Refined Sugar: 22,138 MT
• CIF Values:
  • White Refined Sugar: Ksh 89,394/tonne
  • Mill White/Brown Sugar: Ksh 100,000/tonne

Molasses Exports

• Total Exports: Dropped by 37% to 1,110 MT, down from 1,762 MT in December 2024.
• Destination: All exports were destined for Uganda.
• FOB Value: Declined to Ksh 11,531 per tonne, down from Ksh 12,057 in December 2024.

5. Global Sugar Market

• ISA Daily Raw Sugar Price: Declined further to USD 18.00 cents/lb in January 2025, down from USD 19.23 cents/lb in December 2024.

January 2025 saw a strong recovery in sugarcane milling and production, reflecting improved supply. However, molasses exports declined sharply, and global sugar prices continued to trend downward. Meanwhile, local sugar prices rose further, driven by increased wholesale and ex-factory prices. Imports surged, helping to stabilize supply despite rising costs in the international market.