Sugarcane farmers are set to earn better returns after the government increased the minimum price per tonne by Sh250.

The new price of Sh5,750 per tonne, up from Sh5,500, started to apply on July 21, 2025.

The price change was agreed upon by the Interim Sugarcane Pricing Committee during its second meeting held on July 17, according to a letter from the Ministry of Agriculture.

The committee based its decision on sugar market conditions, particularly factory gate sugar prices between April and June this year.

“Having considered the prevailing ex-factory sugar prices over the past three months (April–June 2025), the committee approved an increase in the price of cane from the current Sh5,500 to Sh5,750 per tonne, effective from July 21, 2025,” said Agriculture Principal Secretary Kipronoh Ronoh.

The ministry directed all sugar companies to comply with the new rate and to ensure farmers are paid without delays. “You are hereby requested to adhere to the new minimum cane price while making payments to the farmers on time,” the PS stated.

This adjustment is expected to offer relief to farmers who have long endured low earnings, high production costs, and late payments. The government said the new rate aims to ensure that cane producers benefit from recent changes in sugar prices.

The sugar industry in Kenya has struggled with unstable prices, delayed farmer payments, and rising input costs. Many farmers have asked the government to establish a pricing model that keeps pace with market realities and ensures fair compensation.

The Interim Sugarcane Pricing Committee will continue to assess market trends and recommend further price changes where necessary to ensure fairness for growers and sustainability in the sector.