By Etherly Barasa
Introduction
Kenya’s sugar industry has for decades played a vital role in the country’s economy, supporting over 250,000 smallholder farmers and generating employment across value chains. However, the sector has of recent days plagued by inefficiencies and falling productivity. At the heart of these problems lies a current tonnage-based model, where Kenyan farmers are paid by the weight of cane delivered, regardless of how much sugar that cane actually contains. This system rewards quantity over quality, leading to poor harvesting practices, low yielding varieties and ultimately, reduced sugar recovery by mills. Due to this challenges the Kenya sugar board has decided to adopt a new payment model based on quality.
A growing body of global evidence shows that switching to a Quality-Based Cane Payment System (QBCPS) could be a game changer. Already in use in sugar powerhouses like Australia, Brazil, India and Thailand, this system incentivizes quality production, enhances transparency, boosts mill efficiency and strengthens farmer livelihoods. For Kenya, adopting a QBCPS marks the beginning of a new era of fairness and sustainability in the sugar sector.
Why Quality-Based Payments Matter
- Fair earnings to the farmer
A QBCPS will transforms the above dynamics by assessing the sucrose content (Pol %) and other parameters like fiber and moisture in each cane consignment. Payments are then calculated based on sucrose, recoverable sugar and not just weight. This model aligns farmer incentives with the true value of their crop and encourages them to adopt better farming practices.
In countries like Australia, the sugarcane industry relies entirely on a system known as Commercial Cane Sugar (CCS), where payments are tied to the actual sugar content of each farmer’s delivery. This has not only improved farmer earnings but also enhanced the overall quality of cane entering the mills. Resulting to, both growers and processors benefit from increased efficiency and profitability.
- Building Transparency and Restoring Trust
Kenya’s sugar sector has long been marred by mistrust between farmers and millers. Disputes over payments, unclear deductions, and opaque weighing practices have eroded confidence. A QBCPS introduces objectivity into the equation, using standardized lab testing, Cane Testing Units (CTU) and digital records to determine sugarcane content for payment purposes.
In India, particularly in sugar-producing states, cooperative mills have implemented quality-based payment systems where farmers receive detailed breakdowns of their cane quality and corresponding earnings. This has built greater trust and accountability within the system, creating a sense of shared responsibility for quality improvement.
Kenya is now adopting a similar approach by establishing cane testing laboratories in all sugar mills and adopting transparent reporting systems that give farmers direct access to their quality results.
- Boosting Mill Efficiency and Profitability
Most sugar factories in Kenya operates below capacity, a QBCPS offers the ability to optimize operations by allowing millers to have access to real-time data on cane quality, they can adjust crushing and juice extraction processes accordingly, leading to improved sugar recovery rates, reduced energy use and better product consistency.
Brazil, the world’s largest sugar producer, its mills employ automated sampling and lab-based analysis to schedule processing for high quality cane first, ensuring maximum efficiency and profitability. Kenyan mills, which often suffer from equipment breakdowns and poor recovery, will benefit significantly from this similar approach.
- Empowering Farmers through Data and Innovation
Perhaps the most transformative impact of QBCPS is the way it empowers farmers with data. When the stakeholder understand how their farming practices affect sucrose levels and therefore income, they are more likely to adopt improved cane varieties, harvest at the right time and apply appropriate fertilizer.
In Thailand, where a robust QBCPS has been in place for years, farmers have been quick to adopt sustainable farming practices, guided by the feedback loop created through quality assessments. This has also allowed the industry to comply with international environmental and traceability standards, opening doors to export markets. Kenya’s farmers too stand to gain from such empowerment. With consistent feedback on cane quality, they will be able to make informed decisions that increase both their yields and earnings.
Implementation Challenges
Adopting a QBCPS in Kenya has been faced with several challenges with key hurdles including:
- The initial cost of establishing cane testing laboratories and equipment is very high, this has made it so far not all mills to have the cane testing unit in place.
- Farmer education to build understanding and acceptance of the new model. Some farmers are yet to get full understanding of the model and therefore more sensitization on the same need to take place.
- Resistance from entrenched interests benefiting from the current opaque system
- The need for Kenya sugar board to integrate their system with mills weighbridge has also faced difficulties from some millers.
However, these are not insurmountable obstacles. Pilot projects, which are currently running in 11 mills supported by government, private millers and research institutions, are serving as proof of concept.
Furthermore, the government through the Kenya sugar board is playing a pivotal role by enacting legislation that supports quality-based pricing, mandates transparency, and protects the interests of both farmers and millers.
Conclusion:
Kenya's sugar industry is at a crossroads. With rising production costs, global competition, and climate challenges, business as usual is no longer sustainable. A Quality-Based Cane Payment System offers a clear path forward one that rewards quality, fosters transparency, improves mill performance, and empowers farmers.
The experience of countries like Australia, India, Brazil and Thailand has provided a blueprint Kenya can adapt to local realities. The opportunity now lies in taking bold, coordinated action. If the sector embraces this shift, Kenya’s sugar industry will finally unlock its full potential and become a driver of rural prosperity and industrial competitiveness.