The government, through the Ministry of Agriculture, will be investing Ksh4 billion through the Sugar Development Levy (SDL) to support the sugar industry.
This announcement was made by the Agriculture Cabinet Secretary, Mutahi Kagwe, when he visited the West Kenya Sugar Company on Monday, June 16, just weeks after the company took over the control of the Nzoia Sugar Company.
In a contentious takeover, the group signed a 30-year lease with the government in a move expected to revive the state-owned mill and bring stability to the sector.
While unveiling the fund, CS Kagwe stated that it was intended to support sustainable growth across the entire sugar industry, not just a single player.
“These investments are designed to secure the long-term sustainability of the sugar industry,” CS Kagwe said.
Of the Ksh4 billion annual investment plan, 40 per cent, which is about Ksh2 billion, will be utilised in cane development programs across the country.
The rest, 60 per cent will go towards the development of other strategic sectors meant to grow the sugar industry positively.
For instance, 15 per cent—about Ksh600 million—will be used in the rehabilitation of roads in sugarcane-growing regions.
Another Ksh600 million will go to research and innovation for improved industry productivity, and yet another one to factory rehabilitation across the sector.
5 per cent of the fund, which is around Ksh200 million, will be utilised to strengthen farmer associations, and the last 10 per cent will go to administrative operations under the Sugar Board.
During the visit, the CS further commended West Kenya Sugar for implementing policies that favour farmers, including weekly payments to over 120,000 contracted farmers.
He also highlighted the company disburses over Ksh14 billion annually in farmer payments and invests an additional Ksh7 billion annually in cane development initiatives.
The Rai Sugar Group, which manages the company, reportedly manages nearly 50 per cent of the land under sugarcane cultivation in Kenya.
