Ruto announces annual bonuses for sugarcane farmers in Kisumu

President William Ruto has revealed that sugarcane farmers in Kisumu County will begin receiving yearly bonuses.

Addressing a gathering in Kisumu Town during the launch of the LV Point Affordable Housing precinct at LV Marina on Thursday, May 29, 2025, he explained that these bonuses are intended to boost the local economy of the county.

"We will ensure farmers receive annual bonuses, just like those growing tea and coffee," the President affirmed.

He also called on sugarcane companies in Kisumu County to pay their workers and farmers promptly to help revive the sugar industry.

"I urge all sugarcane companies in Kisumu to honor timely payments to workers and farmers. Sugarcane should no longer be a source of poverty for Kenyans but a means to boost incomes, grow the economy, and reduce reliance on imported sugar when we have the capacity to produce locally," he emphasized.

This announcement follows Ruto’s earlier release of a KSh150 million bonus for sugarcane farmers supplying Kakamega’s Mumias Sugar Factory, marking the sector’s first such payment on January 20, 2025.

At the launch event, Ruto highlighted that this landmark bonus not only confirms the positive impact of recent sugar sector reforms but also showcases the potential to improve farmers’ livelihoods and support thousands of families.

"With a record production of 832,000 tonnes of sugar last year, Kenya is on track to achieve surplus output and begin regional exports by 2026, making sugarcane farming a profitable and sustainable venture," he noted.

Additionally, Ruto highlighted that the reforms introduced in the sugar industry have produced substantial outcomes.

He mentioned that clearing Sh117 billion in debts—including Sh1.7 billion owed to farmers and Sh650 million in employee arrears—was a key step toward revitalizing the sector.

As part of broader reforms recommended by the 2019 Sugar Taskforce, President Ruto confirmed that he has signed into law the Sugar Act 2024, which establishes sugarcane catchment areas to improve supply management, coordinate milling schedules, and boost efficiency.

"We have tasked the new Cabinet Secretary for Agriculture, Mutahi Kagwe, who is here with us today, to finalize the regulations needed to implement the Sugar Act, aiming to bring clarity and eliminate cartels within the sector," he said.

The President also highlighted government efforts to distribute subsidized fertilizer to increase productivity and raise farmers’ incomes.

"Last year, Kenya produced a record 832,000 metric tonnes of sugar, and we expect this growth to continue. By 2026, the country should become a surplus sugar producer and start exporting to the regional market," President Ruto added.

He explained that the bonus payments would play a significant role in expanding the sugar industry, which is central to Kenya’s export ambitions.

"To facilitate this, 50 percent of the annual rent paid to the bank will be shared as bonuses with farmers on a pro-rata basis, depending on the volume of sugarcane each farmer delivers to the miller," the President said.

He assured that this approach will promote fairness and transparency, with adjustments made as necessary based on the company’s performance.