Farmers are set to benefit from a windfall after the government once again increased the minimum price of sugarcane, raising it from Ksh5,500 to Ksh5,750 per tonne.
This increase follows a previous rise in May, when the price moved from Ksh5,250 to Ksh5,500 per tonne.
The 4th Interim Sugarcane Pricing Committee approved the increase of Ksh250 after reviewing ex-factory sugar prices for the April to June period. The new price is set to take effect on Monday July 21.
In an official communication to sugar millers, the Principal Secretary for Agriculture, Kipronoh Rono, directed all stakeholders to implement the new minimum price immediately to ensure timely payment to farmers.
“The Committee approved an increase in the price of cane from the current Ksh5,500 per tonne to Ksh5,750 per tonne, effective July 21, 2025,” read the letter signed by the PS.
The government directed millers including Kibos Sugar & Allied Industries, Nzoia Sugar, Chemelil, Muhoroni, Webuye, Transmara, West Kenya, Butali, South Nyanza, and Mumias Sugar, among other millers, to adhere to the new prices, assuring farmers that it would 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.
This prompted a raft of reforms by the government, spearheaded by Agriculture Cabinet Secretary Mutahi Kagwe, who reiterated that the government was committed to stabilising the sugar industry through price reviews and better farmer support.
The latest review brings the total increment within the last four months to Ksh500 per tonne, a 9.5 per cent rise from April, and is predicted to offer a much-needed boost to sugarcane farmers across the country.
It also comes amid the numerous reforms the government has been undertaking in the sugar industry, including leasing four government-owned factories to private millers.
Earlier in the year, 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 argued that the move was set to revive the struggling sugar industry. The leasing model replaced an earlier privatization plan and was approved after extensive consultations with stakeholders, Parliament, and county leaders.
