Govt Cuts Sugarcane Prices, Says Kenyan Farmers Still Earn More Than Their Tanzanian Counterparts

The government has revised the minimum sugarcane price from Ksh 5,750 to Ksh 5,500 per tonne following consultations to balance farmer earnings, miller sustainability, and current market realities.

In a directive issued by the Kenya Sugar Board on April 24, 2026, all millers were ordered to implement the new price immediately and ensure prompt farmer payments.

The review followed deliberations by the 4th Interim Sugarcane Pricing Committee, which assessed market conditions as sugar production and cane availability increased across the country.

With more sugar in the market, prices have dropped from about Ksh 7,000 to between Ksh 6,000 and Ksh 6,100 per 50kg bag, making the review necessary to keep factories operational and the industry sustainable.

“We refer to the Fifth and Fourth meetings of the interim sugarcane pricing committee held virtually on 24th April 2026 and physically on 17th April 2026, respectively, and subsequent extensive consultations on Sugarcane Prices. This is therefore to notify you that a new sugarcane price of Ksh. 5,500 per tonne has been approved effective immediately,” reads part of the directive.

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Why the Govt Settled for Those Sugarcane Prices

Although some millers proposed a lower price of Ksh 5,000 per tonne, the government settled on Ksh 5,500 to protect farmers from a sharp reduction while responding to market changes.

Kenyan farmers still earn more than their regional counterparts, with Tanzania paying about KSh 4,900 and Uganda Ksh 4,500 per tonne.

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The move is part of broader reforms by CS Sen. Mutahi Kagwe to revive the sugar sector, support millers, protect farmers, and reduce sugar imports.

“This new price is comparatively high in the region. You are hereby requested to adhere to the new minimum cane price while making payments to the farmers on time,” Kagwe said.

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Kenya Sugar Board has lowered the prices from Ksh 5,750 to Ksh 5,500. PHOTO/ Kenya Sugar Board.