Kenya's sugar industry has recorded a significant recovery, with production reaching 348,143 tonnes between January and May 2026. This marks a 21.98% increase compared to the same period last year, according to data from the Kenya National Bureau of Statistics (KNBS).

The growth is largely attributed to a 25.1% rise in sugar cane deliveries by farmers, which increased to 3.9 million tonnes from 3.1 million tonnes during the review period. This surge in raw material availability has enabled factories to operate closer to their full capacity.

Key Factors Driving Growth

  • Factory Reforms: The leasing of four state-owned sugar factories—Sony, Nzoia, Chemelil, and Muhoroni—to private investors has attracted new capital and improved operational efficiency.
  • Implementation of the Sugar Act 2024: This legislation has facilitated better zoning of sugar cane growing areas, reducing cane poaching and enhancing factory planning and utilization.
  • Increased Farmer Incentives: The Kenya Sugar Board raised the minimum price of sugar cane to Sh5,500 per tonne in April to boost farmers’ earnings while maintaining millers’ financial sustainability.

Despite a month-on-month drop in sugar production from 68,800 tonnes in April to 53,300 tonnes in May 2026, the overall trend points to an upward trajectory for the sector. Soft drink production also saw a slight decline during this period.

Economic and Social Impact

The National Treasury highlights that the revitalized sugar sector now supports approximately 250,000 direct jobs and sustains nearly six million livelihoods through farming, transport, milling, and trade activities.

Historically, Kenya’s sugar industry faced challenges including outdated equipment, inefficient state factories, delayed payments to farmers, and heavy reliance on sugar imports. The recent reforms aim to reverse these trends by boosting local production to meet domestic demand and generate surplus for regional export.

Looking ahead, continued favorable weather and sustained factory operations are expected to further enhance sugar output in the coming months.