Kenyan Sugarcane Farmers to Benefit as Govt Increases Prices to KSh 5,500 per Tonne

• Sugarcane farmers in Kenya have been pleading with millers to increase the prices of cane delivered to the factories
• In some instances, they have staged protests to demand better pay from millers, whom they have accused of offering them low prices for raw cane delivered
• The government has now listened to their plea and directed millers to pay them KSh 5,500 per tonne on cane delivered to factories

Bonface Kanyamwaya, a journalist at TUKO.co.ke, has more than 10 years of financial, economic, business, markets, and aviation expertise, providing insights into Kenya and global trends.

Sugarcane farmers are set to smile to the bank after the Sugarcane Pricing Committee increased the minimum sugarcane prices to KSh 5,500 per tonne.

The prices have been increased from the KSh 5,300 per tonne that millers have been paying cane farmers when they make deliveries to the factories.

The new prices take effect from Monday, May 26, for a period that was not specified by the government.

"The Cane Pricing Committee approved the revised rate, and it will take effect from May 26, 2025. This price adjustment is part of broader ongoing reforms aimed at strengthening the sugar industry and ensuring fair compensation for farmers," said a statement by the Ministry of Agriculture and Livestock Development on Friday, May 23.

The directive was issued to all 15 licensed millers, including the recently leased state-owned factories.

The Government of Kenya, through the Ministry of Agriculture, emphasised in the statement the importance of adhering to the new minimum price.

All millers were asked to make timely payments to farmers, reinforcing the government’s commitment to safeguarding farmer welfare and improving livelihoods in sugarcane-growing regions.

Price of cane per tonne reviewed in February

This was the second time in less than four months that the Sugarcane Pricing Committee was reviewing the price of cane per tonne, offering a major sigh of relief to farmers.

In February 2025, the government increased the price of cane delivered to factories to KSh 5,300 per tonne from KSh 5,000.

The prices took effect from Monday, February 10, according to Agriculture Principal Secretary Paul Rono.

The previous amount of KSh 5,000 was increased in August 2024 after farmers decried that the KSh 4,950 per tonne they were getting was too low.

President Ruto revives sugar sector

This adjustment in the prices of cane delivered to factories by millers comes at a time when the Kenya Kwanza government is reviving the sugarcane sector.

As part of the revival plan, a section of sugarcane farmers in Mumias received bonuses after President Ruto launched the programme in Mumias in January 2025.

West Kenya pumps KSh 5.8 billion into Nzoia Sugar

Nzoia Sugar has been acquired by Jaswant Rai's firm, West Kenya Sugar, in a deal valued at KSh 5.6 billion.

The money will be used by Nzoia Sugar Factory to jump-start operations at the struggling mill.

The takeover of Nzoia Sugar by West Kenya, however, faced strong opposition from farmers who feared they would be declared redundant.

Proofreading by Asher Omondi, copy editor at TUKO.co.ke.

Source: TUKO.co.ke