The government has announced an increase in sugarcane prices from Ksh5,300 to Ksh5,500 per tonne, effective May 26.
The increase was spearheaded by the Ministry of Agriculture and is expected to boost sugarcane farmers’ earnings in the ongoing efforts to stabilise the struggling sugar industry.
The price adjustment follows a review of sugar factory prices over the past three months, with officials citing the need to ensure fair compensation for farmers.
Agriculture PS Kipronoh Ronoh demanded that all licensed millers should adhere to the new minimum price and ensure timely payments to farmers.
"Based on the prevailing ex-factory sugar prices over the past three months (February 2025 April 2025), the price of cane has been increased from the current Kshs 5,300.00 per tonne to Kshs5,500.00 per tonne, effective May 26," the statement signed by Ronoh read in part.
"You are hereby requested to adhere to the new minimum cane price while making payments to the farmers on time," the statement continued.
The government directed millers from Kibos Sugar & Allied Industries, Nzoia Sugar, Chemelil, Muhoroni, Webuye, Transmara, West Kenya, Butali, South Nyanza, and Mumias Sugar, among other milers, to adhere to the new prices assuring farmers that it will monitor compliance closely, even as the PS warned millers against exploiting growers.
The increase in cane prices comes at a time when sugarcane farmers are grappling with low earnings, delayed payments, and fluctuating market prices.
Many of them have long called for government intervention to protect their livelihoods.
The price review also comes amid the numerous reforms the government has been undertaking in the sugar industry, including leasing four government-owned factories to private millers.
Barely a month ago, the government finalised the leasing of Nzoia, Chemelil, Sony, and Muhoroni for 30 years to West Kenya Sugar Company, Kibos Sugar & Allied Industries, Busia Sugar Industry, and West Valley Sugar Company, respectively.
The government argues that the move is set to revive the struggling sugar industry. The leasing model replaces an earlier privatization plan and was approved after extensive consultations with stakeholders, Parliament, and county leaders.
