Kenya sugar production jumps 56.7pc as prices fall by Sh32 for 2kg

NAIROBI, Kenya, Nov 7-Kenya’s sugar production increased by 56.7 per cent in the first nine months of 2026, helping reduce reliance on imports and ease retail prices, as the country positions itself for future exports and greater investment in sugar processing.

Data from the Kenya Sugar Board shows that local factories produced 690,521 tonnes between January and September 2026, up from 440,652 tonnes recorded during the corresponding period last year.

The increase of 249,869 tonnes coincided with a reduction in the national average retail price of sugar, which fell to Sh155 per kilogram in September 2026 from Sh171 in September 2025.

This translates to a Sh32 reduction in the equivalent cost of two kilograms of sugar, from Sh342 to Sh310, offering some relief to households amid pressure on the cost of living.

The improved performance comes as Kenya Sugar Board Chief Executive Officer Jude Chesire takes on a growing international role, having helped break a leadership deadlock at the International Sugar Organization (ISO), where he chairs the Council.

Chesire initiated consultations among member states after three rounds of voting failed to produce a candidate with the required two-thirds majority for the organisation’s Executive Director position.

The Council subsequently agreed that Mauritius’ Devesh Devani would serve the first four-year term, followed by Brazil’s Eduardo Leão de Sousa for the succeeding four years.

The agreement followed inconclusive voting on September 22, 2026, with Chesire’s intervention helping secure consensus among member states.

Kenya is seeking to use its position within the international organisation to advance discussions on export markets, investment, ethanol production and technology for sugar processing.

“Kenya by next year will start building surpluses for exports and requires such a platform to create new markets,” Chesire said.

The country is projecting sugar production of 900,000 tonnes against an estimated annual demand of one million tonnes, compared with production of approximately 650,000 tonnes last year.

The increased output has been supported by higher sugarcane deliveries to factories, which processed 7.76 million tonnes in the first nine months of 2026, representing a 56.2 per cent increase from 4.97 million tonnes recorded during the same period last year.

The growth in local production has also coincided with a decline in sugar imports, which fell by approximately 31 per cent to 251,690 tonnes between January and September 2026, compared with 364,486 tonnes during the corresponding period last year.

Imports of mill white and brown sugar recorded the sharpest decline, dropping by about 71 per cent to 65,845 tonnes from 226,730 tonnes.

However, refined white sugar imports increased to 158,006 tonnes from 137,756 tonnes, highlighting the continued need to strengthen local processing capacity to meet demand across different sugar categories.

Local millers’ cumulative sales also increased by 45.6 per cent to 635,672 tonnes, compared with 436,593 tonnes in the first nine months of 2025.

Sugar stocks at the end of September stood at 70,773 tonnes, up from 14,033 tonnes a year earlier, providing a larger inventory buffer.

Beyond sugar production, Kenya is also exploring opportunities to expand ethanol and biofuel production by tapping into molasses, a by-product of sugar manufacturing.

“Conversations are now building up towards biofuels and ethanol production,” Chesire said, adding that Kenya had started the process and was seeking to benchmark with established producers.

Brazil is among the countries Kenya hopes to learn from, particularly in developing its ethanol industry and creating additional value from sugarcane.

The opportunity comes as domestic molasses production increased by 62.1 per cent to 307,617 tonnes between January and September 2026, compared with 189,809 tonnes during the same period last year.

Molasses stocks also rose to 65,384 tonnes at the end of September, from 12,735 tonnes a year earlier, pointing to growing volumes that could support additional processing and value addition if investment and markets are secured.

Kenya’s exports remain relatively modest despite the production gains, with 315.57 tonnes exported between January and September 2026, compared with 244.80 tonnes during the corresponding period last year.