KAKAMEGA, Kenya — Agriculture Cabinet Secretary Mutahi Kagwe has unveiled a Sh4 billion annual investment plan to revitalise Kenya’s struggling sugar industry, during a high-profile visit to West Kenya Sugar Company in Kakamega County.
The visit comes just weeks after the Rai Group, which owns West Kenya Sugar, secured a 30-year lease to operate the state-owned Nzoia Sugar Company—part of the government’s broader strategy to revive public sugar mills through private partnerships.
Speaking during the tour on Saturday, Kagwe said the National Sugar Sector Support Plan—funded through the reinstated Sugar Development Levy (SDL)—will inject new life into a sector long plagued by inefficiencies, cane poaching, and collapsing mills.
“These investments are designed to secure the long-term sustainability of the sugar industry,” Kagwe said, adding that the allocations were informed by extensive consultations with farmers’ unions and industry stakeholders.
Under the plan, 40% of the SDL—nearly Sh2 billion—will go into cane development across the country.
Another 45% will be evenly split among roads rehabilitation, factory upgrades, and research and innovation.
The remaining funds will support farmer organisations and administrative operations through the Sugar Board.
Backing Private Sector-Led Turnaround
The CS praised West Kenya Sugar for its farmer-first approach, highlighting the company’s policy of weekly payments to over 120,000 contracted farmers and consistent monthly wages for its staff.
According to the Agriculture and Food Authority (AFA), the Rai Group now manages nearly half of all land under sugarcane cultivation in Kenya—solidifying its position as a key player in the sector’s recovery.
“We must support those investing billions to transform this sector,” Kagwe said. “By 2026, Kenya must stop being a net importer and become an exporter of sugar.”
West Kenya Sugar currently pays farmers over Sh14 billion annually and invests an additional Sh7 billion in cane development, according to company figures.
Tackling Cane Poaching and Zoning Conflicts
Kagwe also addressed rising tensions between millers over cane poaching, a practice that has led to disputes and instability in the industry.
He urged farmers to remain loyal to mills that actively support them and instructed the Sugar Board to urgently establish clear zonal boundaries to guide operations among millers.
“Cane zoning isn’t about restricting farmers—it’s about building trust and ensuring sustainability,” he noted.
Farmers were further advised to allow cane to fully mature before harvest in order to improve sugar quality and enhance Kenya’s competitiveness once exports begin.
Focus on Private Mills
The CS also toured Butali Sugar Mills, another major private miller in the region, as part of his assessment of the role private players are playing in sugar sector reforms.
His tour reflects a growing shift by the government to lean on private investment to revamp the ailing sugar industry.
The government hopes that partnerships like the one with West Kenya Sugar at Nzoia Sugar will be a model for sustainable turnaround strategies in other public mills.
