The government has set the minimum sugarcane price at Sh5,500 per tonne, following a policy review aimed at balancing the competing interests of farmers and sugar millers while responding to shifting market conditions in the country’s sugar industry.
In a directive dated April 24, 2026, issued by the Kenya Sugar Board, all licensed sugar millers were instructed to adopt the new pricing structure with immediate effect and ensure timely payments to farmers.
The decision follows consultations by the 4th Interim Sugarcane Pricing Committee, which was tasked with reviewing cane prices in line with developments in production, supply, and market performance.
"This is, therefore, to notify you that a new sugarcane price of Sh5,500 per tonne has been approved, effective immediately. This new price is comparatively high in the region," reads the letter addressed to millers.
"You are hereby requested to adhere to the new minimum cane price while making payments to the farmers on time."
According to the Committee, recent months have seen a significant increase in sugar production across the country, resulting in higher cane supply and a corresponding decline in sugar prices.
Market rates have dropped from approximately Sh7,000 per 50kg bag to between Sh6,000 and Sh6,100, creating pressure on millers’ margins and prompting a reassessment of the farmgate cane price.
During the review process, sugar millers had pushed for a lower cane price of around Sh5,000 per tonne, citing reduced sugar prices and rising operational costs.
However, after extensive consultations, the government settled on Sh5,500 per tonne, describing it as a balanced compromise that seeks to protect farmers from significant income losses while maintaining the viability of milling operations.
"Although some millers proposed a lower price of Sh5,000 per tonne, the government settled on Sh5,500 to protect farmers from a sharp reduction while responding to market changes," Officials said.
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