Kenya has formally withdrawn from the COMESA Sugar Safeguard regime after 24 years, marking what officials describe as a confident transition for the country’s sugar industry.
Kenya Sugar Board Chief Executive Officer Jude Chesire said the safeguard, which expired on November 30, 2025, had achieved its purpose as a temporary, reform‑driven instrument to stabilize and restructure the sector. He stressed that the exit reflects strength, not vulnerability. “Farmers, millers, workers, and investors are assured that leaving the safeguard does not expose the sector to disruption, but signals readiness to compete within a structured and fair regional market,” Chesire said.
Over the past several years, the Sugar Board under the Ministry of Agriculture and Livestock Development has shifted policy focus from protection to competitiveness, anchored on efficiency, diversification, and value addition. Globally, Chesire noted, sugarcane is increasingly treated as an industrial raw material, with refined sugar becoming secondary.
Value is now realized through integrated processing of ethanol from molasses, electricity from bagasse, paper and board manufacturing, industrial alcohols, and other downstream products. These practices, he explained, lower production costs and explain why some exporting countries supply sugar at comparatively lower prices.
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Kenya is firmly on this path, Chesire said, with millers diversifying by‑products to strengthen balance sheets, stabilize cash flows, and improve farmer payments. “This approach not only strengthens millers but also insulates farmers from volatility associated with over‑reliance on table sugar alone,” he added.
On supply fundamentals, Chesire reported a strong recovery in the subsector. Sugarcane acreage expanded by 19.4 per cent from 242,508 hectares to 289,631 hectares, supported by favorable rainfall, certified seed cane, and targeted fertilizer subsidies. As a result, sugar production rose by 76 per cent, from 472,773 metric tonnes in 2022 to 815,454 metric tonnes, reflecting improved farm productivity and factory efficiency. Current national demand stands at about 1.1 million metric tonnes annually.
While domestic production has made significant gains, Chesire said miller capacity expansion, factory rehabilitation, and newly leased mills will take time to fully optimise operations. Kenya will therefore continue supplementing local supply through controlled imports from COMESA and other approved sources. “Importation from both COMESA and non‑COMESA origins will be applied transparently to ensure price stability for consumers, market certainty for producers, and overall food security, without undermining local production,” he explained.
The sector remains sensitive to climatic conditions, with dry spells expected to temporarily reduce output, while seasons of adequate rainfall are projected to boost production. These dynamics, Chesire said, are factored into ongoing planning and market coordination measures.
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Looking ahead, the medium‑term outlook remains strong. As miller capacity expands and farm productivity improves, Kenya is projected to meet domestic demand and eventually achieve surplus production for regional export competitiveness. The industry has undergone deep structural reforms, including the transition of former state‑owned mills to long‑term private leasing—a deliberate policy to restore efficiency, professionalism, and accountability.
Chesire emphasised that the exit from the safeguard aligns with the reform trajectory already underway and reinforces certainty in the operating environment. The Kenya Sugar Board continues to provide regulatory oversight, market coordination, and farmer protection to ensure a fair and sustainable industry.
Kenya first sought the safeguard in 2001 at the launch of the COMESA Free Trade Area under Article 61 of the COMESA Treaty, when the industry required structured protection to undertake reforms. Over 24 years and eight extensions, the safeguard was governed by strict benchmarks, including tariff‑rate quotas, productivity investments, sector restructuring, infrastructure development, and continuous performance monitoring.
With these obligations now fully met, Chesire said the conclusion of the safeguard marks the successful completion of a reform cycle. Kenya now enters a new phase defined by competitiveness, value addition, regional integration, and sustainable growth, supported by a clear policy framework and a restructured private‑sector‑led industry. The government, he affirmed, remains committed to safeguarding farmer livelihoods, supporting miller viability, and ensuring food security, price stability, and long‑term growth of the sugar sector within the COMESA Free Trade Area.
By Fredrick Odiero
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