Kagwe: Sugar mills set to supply power to National grid under new plan

Agriculture Cabinet Secretary Mutahi Kagwe has said Kenya is moving to reposition its sugar industry as a key driver of electricity and biofuel production, with plans for sugar factories to supply power to the national grid and expand ethanol output to cut fuel imports and boost energy security.

Speaking during a visit to West Valley Sugar Company, a flagship investment under the Kipchimchim Group, Kagwe said the government is focused on maximising the full value of sugarcane beyond sugar production to include electricity generation, ethanol and other industrial products.

He said sugar factories already have significant untapped potential in power generation through bagasse, the fibrous by-product of sugarcane.

Citing West Valley Sugar Company, Kagwe noted that the facility currently produces about five megawatts of electricity using only a fraction of its available bagasse.

“At full capacity, the factory could generate up to 15 megawatts. This presents a huge opportunity for Kenya’s energy sector,” he said.

The CS said the government is working on frameworks that will allow sugar millers to sell surplus electricity to the national grid, a move expected to create new revenue streams for factories and farmers while strengthening the country’s energy supply.

Kagwe also underscored the importance of ethanol production, saying it would help reduce Kenya’s dependence on imported petroleum products and save foreign exchange.

He said the government supports ethanol blending programmes as part of broader efforts to enhance energy security.

“If we blend ethanol with fuel, we will save foreign exchange and significantly reduce our dependence on imported petroleum products,” he said.

West Valley Sugar Company currently produces about 20,000 litres of ethanol daily, a capacity Kagwe described as a model for the future of the industry.

The CS said ongoing reforms in the sugar sector have already led to increased production, which has risen by about 22 per cent over the past year following the leasing of state-owned mills and improved support to farmers.

He encouraged local investors to take advantage of opportunities in sugar production, ethanol manufacturing, power generation and value addition, noting that the sector should not be left to foreign investors alone.