The government has announced a new minimum price of KSh5,500 per tonne for sugarcane, a move aimed at balancing the interests of farmers and millers while responding to changing market conditions in the country’s sugar industry.
In a directive dated April 24, 2026, the Kenya Sugar Board instructed all licensed millers to adopt the new pricing structure immediately and ensure timely payments to farmers. The decision followed consultations by the 4th Interim Sugarcane Pricing Committee, which reviewed cane prices against trends in production, supply, and market performance.
The Committee noted that recent months have seen a surge in sugar production, leading to higher cane supply and a decline in sugar prices. Market rates have dropped from about Sh7,000 per 50kg bag to between Sh6,000 and Sh6,100, squeezing millers’ margins and prompting calls for a price adjustment.
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During the review, millers had pushed for a lower cane price of around Sh5,000 per tonne, citing reduced sugar prices and rising operational costs. However, after extensive consultations, the government settled on Sh5,500 per tonne, describing it as a compromise that cushions farmers from steep income losses while maintaining the viability of milling operations.
“Although some millers proposed a lower price of Sh5,000 per tonne, the government settled on Sh5,500 to protect farmers from a sharp reduction while responding to market changes,” officials said in the directive.
The Kenya Sugar Board emphasized that millers must adhere to the new minimum price and make payments promptly. The directive also highlighted that the new price is comparatively high within the region.
By Masaki Enock
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