The Ministry of Agriculture and Livestock will be investing KES4 billion through the Sugar Development Levy (SDL) to support sustainable growth across the sugar sector value chain.

Speaking during a tour of West Kenya Sugar Company which secured a 30-year lease for Nzoia Sugar a few weeks ago, Agriculture Cabinet Secretary Mutahi Kagwe said 40 percent of the Sugar Development Levy will go towards cane development programmes across the country while the remaining allocation will support other strategic initiatives.

The allocations follow extensive consultations and concerns raised by farmers’ unions and miller representatives, explained Kagwe, affirming that the fund is meant to support sustainable growth across the entire sugar industry and not just a single player.

“These investments are designed to secure the long-term sustainability of the sugar industry,” CS Kagwe said on Monday.

Out of the KES4 billion annual investment plan, 60 percent will be channelled towards the development with KES 600 million being allocated to rehabilitate the roads in sugarcane-growing regions.

Another 15 percent will be invested in research and innovation for improved industry productivity, as will factory rehabilitation across the sector. Five percent will help strengthen farmer associations with the remainder funding going to administrative operations under the Sugar Board.

Meanwhile, 40 percent of the total will be invested in cane development programmes. 

CS Kagwe commended West Kenya Sugar for its strong farmer-centred policies, including weekly payments to over 120,000 contracted farmers and consistent monthly wages for staff.

“We must shift from being net importers to exporters of sugar by 2026,” he said.

The CS further urged Kenyans to support investors who have committed significant capital to the sector, pointing to companies like West Kenya that are helping turn around struggling institutions.

West Kenya Sugar Company, owned by the Rai Group, has officially taken over the operations of Nzoia Sugar under a lease agreement — a move the government hopes will revive the struggling state-owned mill and stabilize the sugar sector. 

According to the Agriculture and Food Authority (AFA), as of September 30, 2024, the Rai Sugar Group manages nearly 50 percent of all land under sugarcane cultivation in Kenya, highlighting its expanding influence in the industry.

The company disburses over KES14 billion annually in farmer payments and invests an additional KES7 billion annually in cane development initiatives.

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