Government to allow raw sugar imports to revive idle factories
Trade CS Kinyanjui noted that the importation was only a short-term intervention as the government has put in place a programme to boost cane production in partnership with farmers and county governments.
The government has announced plans to open a special import window for raw sugar to sustain industrial production amid a crippling nationwide cane shortage.
Investments, Trade and Industry Cabinet Secretary Lee Kinyanjui said Kenya was facing a shortfall of nearly 400,000 metric tonnes of sugar, a gap that has left billions of shillings in investments lying idle.
He explained that the importation would specifically target raw sugar for refining into industrial sugar used in food, beverages, pharmaceuticals, and distilleries.
Speaking during a tour of Kibos Sugar and Allied Industries in Kisumu on Thursday, Kinyanjui, who was accompanied by Principal Secretaries Dr. Juma Mukhwana (Industry) and Regina Akoth (Trade), said the government’s plan was aimed at stabilising the sugar sector and cutting the huge import bill.
“We don’t have enough raw sugar to process industrial sugar. As a result, we have to import because factories such as this one in Kibos, which cost more than Sh2 billion to set up, have not worked since 2016,” he said.
Kinyanjui noted that the importation was only a short-term intervention as the government has put in place a programme to boost cane production in partnership with farmers and county governments. He said the plan was designed to help the country achieve self-sufficiency within two to three years.
He added that sugar factories have been placed under close watch to strengthen their outreach to farmers through grower schemes in order to ensure steady cane supply to mills.
Kinyanjui stressed that the importation window would strictly target industrial sugar production and would not affect local cane farmers.
He also assured Kenyans that strict quality and safety standards would be applied.
“Importation does not mean we suspend our regulations. There are mechanisms for quality control, and this will be followed to the letter. What we are trying to end is the culture of importing what we can produce locally,” he said.
The CS emphasised that protecting local industries and safeguarding foreign exchange remained the government’s main priority.
“Every time we import, we are draining foreign exchange that could be retained by producing here. The balance is to protect our local industries, create jobs for young people, and still meet industrial demand,” he added.
Kibos Sugar and Allied Industries Managing Director Bhire Chatthe said the company’s Sh2 billion refinery, established in 2016, required 165,000 metric tonnes annually to operate.
He explained that the company’s own production was insufficient, and the supply from other factories across the country could not meet the demand.
Bhire revealed that last year, Kibos sought approval from the East African Community Secretariat to import 165,000 metric tonnes of raw sugar but only received clearance for 5,000 metric tonnes, leaving the refinery idle.
He added that making the refinery fully operational could save the country up to Sh20 billion in import substitution while creating new jobs and expanding tax revenue.
“The benefit to Kenya is not just jobs and taxes, but also reducing our import bill,” he said.
He dismissed concerns that sugar imports could destabilise the market, noting that the company has consistently complied with all national standards.
“We have never had an issue with the Kenya Bureau of Standards in the 15 years we have operated. All our products meet national standards. The only challenge is that this factory cannot function without raw sugar,” he said.
