NAIROBI, Kenya- A fresh scandal in Kenya’s sugar sector has triggered renewed calls for criminal investigations and regulatory reforms after anti-corruption groups alleged a coordinated scheme to divert industrial sugar into the consumer market.
In a statement dated April 24, the National Integrity Alliance (NIA) said it was ‘deeply appalled’ by findings that tens of thousands of tonnes of industrial raw sugar imported under preferential tax terms were allegedly repackaged and sold to unsuspecting consumers.
The consignment in question, approximately 27,839 metric tonnes valued at about Sh1.5 billion, was imported by Mombasa Sugar Refinery Limited using a customs code reserved strictly for industrial processing, which attracts a lower import duty.
According to NIA, the sugar was meant for industrial use but was allegedly diverted into the retail market after repackaging, raising serious concerns over food safety and regulatory oversight.
“What was uncovered is an ongoing scheme in which raw industrial sugar is imported, repackaged as consumer sugar, and sold to unsuspecting Kenyans,” the statement said.
The alliance warned that consumers have no practical way to distinguish industrial sugar from refined table sugar without laboratory testing, heightening risks to public health.
Beyond commercial and criminal implications, NIA framed the issue as a constitutional matter, citing potential violations of rights to health, adequate food, consumer protection, and human dignity.
The claims also point to possible high-level complicity.
The alliance cited “credible sources” suggesting involvement of a well-organised network with links to senior government officials, though no specific individuals were named.
At the centre of the crisis is what analysts describe as a structurally weak sugar sector. Kenya has long faced a production deficit, relying heavily on imports to stabilise prices, a situation that, according to NIA, creates loopholes for exploitation.
The alliance also raised alarm over governance failures at the Kenya Sugar Board (KSB), which it says has been operating without a quorum since 2023 due to a court injunction blocking board appointments.
This, it argues, has left the regulator unable to effectively oversee import approvals and enforce compliance.
The current scandal mirrors a 2023 incident in which condemned sugar was reportedly released, repackaged, and sold to consumers, despite parliamentary recommendations for reforms that remain largely unimplemented.
In response, NIA has issued a series of demands, including immediate investigations by the Directorate of Criminal Investigations (DCI), a corruption probe by the Ethics and Anti-Corruption Commission (EACC), and suspension of public officials linked to the alleged scheme.
The group also called for a nationwide recall of sugar linked to the implicated consignment and stronger enforcement powers for the Kenya Bureau of Standards (KEBS), including the ability to pursue criminal liability against company executives involved in food fraud.
Further, it urged coordination between KEBS, the Kenya Revenue Authority (KRA), and other regulators to trace and withdraw contaminated products from the market.
