Key Highlights
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Tea contributes over 23% of Kenya’s total export earnings.
The sector directly supports over 600,000 smallholder farmers
Despite strong exports, 95% of Kenyan tea is sold in bulk, limiting earnings from value addition.
Create 200,000 new jobs in farming, processing, branding, and distribution by 2027.
Cement Kenya’s position as a global hub for high-quality, value-added teas.
The sugar industry is a critical sub-sector in Kenya’s agricultural economy, supporting over 250,000 smallholder farmers and providing livelihoods to nearly 6 million Kenyans directly and indirectly. Beyond food security, sugar contributes to rural employment, industrial development, and revenue generation.
However, the sub-sector has faced persistent challenges including high production costs, aging factories, inefficiencies in milling, governance issues, and competition from cheap imports. To address these, the Government has prioritized sugar under the Bottom-Up Economic Transformation Agenda (BETA) as a strategic value chain for revival.
The sugar industry is a strategic value chain in Kenya’s economy, supporting over 250,000 smallholder farmers and providing livelihoods for nearly 6 million Kenyans. Despite past challenges of high production costs, factory inefficiencies, and cheap imports, the Government has rolled out major reforms under the Bottom-Up Economic Transformation Agenda (BETA) to revitalize the sector.
🌱 Farmer Support: Distributed certified cane seeds and subsidized fertilizer to boost cane yields.
🏭 Restructuring of Sugar Mills: Initiated revival and leasing processes for Mumias, Chemelil, Muhoroni, Nzoia, and Sony Sugar factories to enhance efficiency and productivity.
📊 Debt Management: Cleared and restructured debts of state-owned sugar companies to make them financially viable.
🚜 Research & Innovation: Partnered with KALRO to develop high-yielding and early-maturing cane varieties, while supporting farm mechanization.
🌍 Policy & Import Control: Enforced measures to regulate sugar imports and protect local producers from unfair competition.
🌿 Boost Cane Production: Expand distribution of certified seeds and fertilizers, while mobilizing farmers into cooperatives to strengthen cane supply.
🏭 Industrial Modernization: Complete the leasing and modernization of public sugar mills and promote mini sugar mills to serve local farmers.
⚡ Value Addition: Invest in ethanol production, electricity cogeneration, and molasses-based industries to diversify income streams.
📦 Market Access & Trade: Strengthen Kenya’s participation in regional markets (COMESA and AfCFTA) and enforce fair cane pricing.
🌱 Sustainability & Governance: Implement a transparent cane pricing model, restructure sector governance, and train farmers on climate-smart sugarcane farming.
Raise sugar production to at least 1 million tonnes annually, reducing imports.
Fully revive all major public-owned mills and increase private sector investments.
Improve farmer earnings by raising farm-gate prices and ensuring timely payments.
Create over 100,000 new jobs across the value chain.
Position Kenya as a competitive, self-sufficient sugar producer in East Africa.
The Government has set out bold medium-term commitments to transform the sugar industry into a self-sufficient, competitive, and farmer-centered value chain. These commitments aim to boost local production, revive milling capacity, and create more opportunities for farmers and communities.
Expand distribution of certified cane seeds and subsidized fertilizers to farmers.
Promote contract farming models that guarantee fair prices and stable cane supply.
Mobilize farmers into cooperatives and associations for stronger bargaining power and access to financing.
Roll out training on climate-smart sugarcane farming to boost yields and resilience.
Lease and modernize all public-owned sugar mills (Mumias, Chemelil, Sony, Nzoia, and Muhoroni) to improve efficiency.
Establish mini sugar mills and cottage industries in cane-growing regions to serve local farmers.
Invest in value addition industries such as ethanol production, electricity cogeneration, and molasses-based products.
Promote private sector investment in milling and processing.
Enforce import regulations to protect local farmers and stabilize sugar prices.
Strengthen Kenya’s position in regional markets under COMESA and AfCFTA.
Implement a transparent cane pricing model to ensure farmers earn fairly.
Promote bankable projects in the sugar value chain to attract both local and foreign investors.
Increase sugar production to at least 1 million tonnes annually.
Achieve full revival of state-owned sugar mills, with private sector investment driving growth.
Boost farmer incomes through better farm-gate prices and efficient cane delivery systems.
Create over 100,000 new jobs across farming, processing, and value addition.
Position Kenya as a regional leader in sustainable sugar production.
| Area | Achievement Summary |
|---|---|
| Mill Operations | 17 mills operational; 4 new mills under construction |
| Sugar Production | 84,000 MT output in July 2024 (exceeds 40,000 MT monthly demand) |
| Cane Cultivation | +500,000 acres under cane cultivation; subsidized fertilizer deployed |
| Policy & Institutions | Sugar Act 2024 passed; Kenya Sugar Board & KSRTI re-established |
| Factory Efficiency | Leasing model applied to 4 mills to boost capital and management |
| Arrears Settlement | KES 1.7B paid to farmers; structured salary arrears payment plan |
All 17 public sugar factories are now fully operational, a landmark achievement in restoring Kenya’s processing capacity. Meanwhile, four additional sugar factories are currently under construction.(The Star, Kenya News)
In July 2024, domestic sugar output reached approximately 84,000 metric tonnes, more than double the national monthly demand of ~40,000 tonnes. This effectively moved Kenya toward production self-sufficiency.(The Star, kilimo.go.ke)
Over 500,000 additional acres have been brought under sugarcane cultivation, bolstering supply.
Subsidised fertiliser was provided to farmers to reduce production costs and enhance yields.(The Star, kilimo.go.ke)
The Sugar Act, 2024 was enacted, re-establishing the Kenya Sugar Board (for sector regulation and promotion) and the Kenya Sugar Research and Training Institute (KSRTI) (for research, training, and yield improvement).(The Star)
Four major sugar factories—Nzoia, Chemelil, Sony (South Nyanza), and Muhoroni—have been placed on 30-year leases to private operators (e.g., Nzoia to West Kenya Sugar; Chemelil to Kibos; Sony to Busia Sugar Industry; Muhoroni to West Valley Sugar) to bring in capital and better management.(The Star)
The Government cleared KES 1.7 billion in arrears to cane farmers, and is proceeding with a structured payment of staff salary arrears, beginning with KES 600 million in May 2025 and continuing through 2026.(pressrelease.co.ke, The Star)
| Area | Achievement Summary |
|---|---|
| Mill Operations | 17 mills operational; 4 new mills under construction |
| Sugar Production | 84,000 MT output in July 2024 (exceeds 40,000 MT monthly demand) |
| Cane Cultivation | +500,000 acres under cane cultivation; subsidized fertilizer deployed |
| Policy & Institutions | Sugar Act 2024 passed; Kenya Sugar Board & KSRTI re-established |
| Factory Efficiency | Leasing model applied to 4 mills to boost capital and management |
| Arrears Settlement | KES 1.7B paid to farmers; structured salary arrears payment plan |
These efforts mark a significant turnaround for Kenya’s sugar sector—reviving dormant factories, increasing domestic production, consolidating governance, and re-energizing farmer participation. Would you like this transformed into a visual portal card or infographic that highlights these delivery points for easy visitor engagement?
Tea and coffee remain Kenya’s most important cash crops, accounting for 23% of the country’s total exports and supporting the livelihoods of over 5 million Kenyans, including 650,000 farmers. These sectors are, however, highly vulnerable to climate change and global price fluctuations, making it essential to adopt sustainable, resilient, and profitable practices.
The Government has prioritized the revitalization of the tea and coffee value chains under the Bottom-Up Economic Transformation Agenda (BETA) to secure farmer incomes, create jobs, and strengthen Kenya’s competitiveness in global markets.
🌱 Reforms in Policy & Governance: Strengthened legal and policy frameworks to improve transparency and farmer earnings.
🏭 Value Addition: Provided processing equipment and promoted branded exports. In December 2022, smallholder tea farmers exported KETEPA value-added teas to West Africa and China.
📈 Rising Coffee Earnings: In FY 2023/24, Kenya produced and exported 48,000 metric tonnes of coffee, earning farmers KSh 25 billion. Average coffee prices at the Nairobi Coffee Exchange rose by 25%.
🌍 Market Development: Ongoing promotion of Kenyan tea and coffee in global markets, diversifying beyond traditional buyers.
The Government is scaling up efforts to make tea and coffee more competitive, climate-smart, and profitable. Key commitments include:
Mobilize farmers into stronger cooperatives for bargaining power.
Provide subsidized fertilizer to tea and coffee growers through their factories.
Supply modern processing equipment to farmer cooperatives.
Promote tea and coffee cottage industries to boost local entrepreneurship.
Diversify into specialty teas and coffees to tap premium markets.
Construct a Tea and Coffee Research & Development Factory.
Establish value addition hubs and warehouses in key markets.
Set up 10 orthodox tea manufacturing lines in smallholder factories.
Operationalize a common user facility within the Dongo Kundu SEZ for tea and coffee processing.
Establish incubation centres for specialty tea and coffee product development.
Implement a global marketing strategy for Kenya’s tea and coffee.
Engage in bilateral agreements to remove tariff and non-tariff barriers.
Secure concessionary airfreight cargo charges for tea and coffee exports to West and Central Africa.
Strengthen tea packaging industries and promote “Made in Kenya” branding worldwide.
Attract local and foreign investment through well-packaged bankable projects in tea and coffee.
Fulfilling the Kenya Kwanza agenda, ensuring progress and prosperity for all Kenyans.
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