Five sugar factories in the upper and lower western regions have temporarily closed operations following a government directive to allow sugarcane to mature.
The shutdown, which took effect on July 14, 2025, will last for three months. The affected mills are Nzoia Sugar Company, Butali Sugar Mills, West Kenya Sugar Company including its Olepito and Naitiri units, Mumias Sugar Ltd and Busia Sugar Industry Ltd.
The Kenya Sugar Board (KSB) confirmed the decision after a stakeholder meeting held on July 4 in Kisumu, where an acute shortage of mature cane was reported across the region. KSB CEO Jude Chesire said the move will help reset the supply system and allow the existing cane in the fields to reach maturity.
He stated that the country is dealing with the consequences of inadequate cane development planning, which has led to the harvesting of immature cane and a drop in sugar production during the first half of the year.
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The shutdown comes as the Sugar Development Levy (SDL) officially takes effect. The levy, which was introduced on July 1, 2025, imposes a four percent charge on the ex-factory price of locally manufactured sugar and on the CIF (Cost, Insurance and Freight) value of imported sugar.
Chesire said the levy is part of a coordinated strategy to rebuild the sector and reduce reliance on sugar imports by the year 2027. He explained that a cane census will be conducted within two months to assess field readiness ahead of the planned resumption of milling operations.
“With the SDL in place and proper financing mechanisms, we are now on the right track. The failures of the past must not be repeated. This is the moment to reclaim the future of Kenya’s sugar industry,” said Chesire. He also announced that millers have been directed to intensify cane development activities to secure a consistent supply of raw materials in the future.
The Kenya Revenue Authority (KRA) has been appointed as the official collection agent for the Sugar Development Levy. All dues must be paid by the 10th day of the month following production or importation.
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The National Treasury has also approved the transfer of the Sugar Development Fund from the Commodity Fund to the Kenya Sugar Board, a move expected to improve transparency, financial discipline and reinvestment efficiency across the industry.
The board now expects to collect more than Ksh 5 billion every year from the levy. According to the Kenya Sugar Board, 40 percent of that amount will go to cane development programmes while 15 percent will be used to rehabilitate roads in sugar-growing areas. Another portion will be directed to research, factory modernization, farmer institution support and administrative functions under the board.
From September 1, 2025, all loan repayments from stakeholders with active financing will be remitted directly to the Kenya Sugar Board. The government maintains that these measures are part of a long-term plan to revive the sugar industry and permanently reduce dependence on imports.
By Benedict Aoya
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