Sugarcane farmers in Kenya have a reason to smile after the government announced yet another increase in the official sugarcane prices. The minimum price per tonne of sugarcane has been revised upwards from Ksh5,500 to Ksh5,750, giving growers a much-needed financial boost.
This adjustment follows a previous price hike in May, where the government raised the rate from Ksh5,250 to Ksh5,500 per tonne.
The price increase was approved by the 4th Interim Sugarcane Pricing Committee, which reviewed the average factory price of sugar between April and June 2025. The committee agreed on an additional Ksh250 per tonne, and the new pricing structure is set to take effect from Monday, July 21, 2025.
In a formal directive addressed to all sugar millers, Agriculture Principal Secretary Kipronoh Rono instructed them to begin applying the new price without delay. He emphasized that the new rate is now the official minimum and must be honored by all players in the sector to ensure farmers are paid fairly and on time.
“The Committee has approved an increase in the price of cane from the current Ksh5,500 per tonne to Ksh5,750 per tonne, effective July 21,” read the official circular signed by PS Rono.
Major sugar processing companies including Kibos Sugar & Allied Industries, Nzoia Sugar, Chemelil, Muhoroni, Webuye, Transmara, West Kenya, Butali, South Nyanza, and Mumias Sugar are among those expected to immediately implement the updated pricing.
The government has also vowed to keep a close watch on the industry to ensure full compliance and warned millers against any attempts to take advantage of farmers.
This price adjustment comes at a time when many sugarcane farmers have been facing serious challenges, including delayed payments, unstable market prices, and meagre earnings.
In response to these issues, the government, through Agriculture Cabinet Secretary Mutahi Kagwe, launched a series of reforms aimed at reviving the ailing sugar industry. These efforts include regular reviews of sugarcane prices and broader support to sugarcane farmers.
With this latest increase, sugarcane prices have gone up by a total of Ksh500 per tonne since April 2025 — a 9.5 percent rise within just four months. Many experts believe this could significantly improve the earnings and morale of sugarcane farmers across the country.
The price revision also aligns with the government’s ongoing structural reforms in the sugar sector. These reforms include the leasing of four state-owned sugar factories to private investors, in a move meant to breathe new life into the struggling industry.
The government recently finalized 30-year lease agreements for Nzoia, Chemelil, Sony, and Muhoroni factories with firms such as West Kenya Sugar Company, Kibos Sugar & Allied Industries, Busia Sugar Industry, and West Valley Sugar Company.
Initially, the government had proposed a full privatization of the factories, but later settled on the leasing model after widespread consultations with sugar stakeholders, lawmakers, and county leadership.
Officials believe the leasing strategy will help turn around the fortunes of these companies, modernize operations, and provide better returns for farmers.
This latest sugarcane price review reflects the government’s renewed commitment to protect the interests of farmers and promote long-term sustainability in the country’s sugar sector.
Join Gen Z New WhatsApp Channel To Stay Updated On time https://whatsapp.com/channel/0029VaWT5gSGufImU8R0DO30
