State halts sugar imports amid rise in local production

The government has suspended the importation of sugar into the country following a surge in local production.

The decision was announced by the Border Control and Operations Coordination Committee, led by Interior Principal Secretary, Raymond Omollo.

Omollo instructed border management committee chairpersons across 27 regions to enforce the new directive.

"In light of the ongoing reforms within the sugar industry, it is evident that domestic sugar production is currently sufficient to meet national demand. To sustain this positive trajectory, it is essential to protect the industry by halting sugar imports. You are therefore directed to enforce a cessation of brown/table sugar imports at your ports of entry," he said in a letter dated August 22.

He highlighted that in June and July 2024, local sugar production saw significant increases, averaging 75,500 metric tonnes and 80,500 metric tonnes per month, respectively, which surpasses local consumption by 4,000 metric tonnes.

Omollo also emphasised the importance of the ongoing efforts to revive all sugar mills, noting that this is expected to drive further growth in the industry and support the economies of sugarcane-farming communities.

He also instructed the chairpersons to work within a multi-agency framework to conduct raids on illegal sugar imports and requested regular updates on the situation.

"Additionally, you are required to collaborate within the multi-agency framework to conduct raids on illegal sugar imports," Omollo said.

The border management committee chairpersons were further directed to provide updates and submit a monthly report to the Border Management Secretariat.

Domestic sugar production saw a notable improvement in the first half of 2024, reaching 485,802 tonnes by the end of August, which significantly drove down sugar prices.

However, according to a report by the Agriculture and Food Authority (AFA), total production experienced a consistent drop in April and May.

"This decrease is mainly attributed to Transmara and Sukari closing down for maintenance, with Mumias and West Valley similarly closed for approximately two weeks to run minor maintenance," AFA said.

Bounce back

The report indicated that production rebounded in June and July to 75,500 metric tonnes and 84,500 metric tonnes, respectively, after the resumption of milling in Transmara and Sukari mills.

West Kenya Sugar factory led production during this period with 97,260 tonnes, followed by Naitiri (65,420 tonnes), Kibos (57,000 tonnes), Butali (53,204 tonnes), and Transmara (38,435 tonnes).

Meanwhile, Nzoia Sugar, Chemilil, South Nyanza (Sony), Muhoroni, and Mumias were among the lowest producers, with 11,605, 17,575, 16,610, 11,984, and 24,397 tonnes, respectively. Kenya relies on 17 sugar factories with a total installed crushing capacity of 55,300 tonnes of cane per day.

The AFA noted that Kenya’s annual sugar consumption stands at 1.1 million metric tonnes, with 950,000 metric tonnes used by households, translating to a monthly average consumption of 80,000 metric tonnes.