CS Kagwe tours Rai's West Kenya Sugar, unveils Sh4bn national sugar sector support plan

Agriculture Cabinet Secretary Mutahi Kagwe on Monday visited West Kenya Sugar Company in Kakamega, a few weeks after the firm secured a 30-year lease to operate Nzoia Sugar Company. The visit focused on strengthening private sector involvement in reviving Kenya’s sugar industry.

West Kenya Sugar, owned by the Rai Group, is now in charge of operations at Nzoia Sugar under a lease arrangement aimed at turning around the struggling state-owned mill.

During the visit, Kagwe announced a Sh4 billion national investment plan under the Sugar Development Levy (SDL). The fund, to be disbursed annually, will support various aspects of the sugar value chain across the country.

According to Kagwe, 40 per cent of the fund, around Ksh 2 billion, will be allocated to cane development.

The remaining amounts will be shared as follows: 15 per cent (Sg600 million) for road rehabilitation in sugarcane-growing regions, 15 per cent for research and innovation, 15 per cent for factory rehabilitation, 5 per cent for farmer associations, and 10 per cent for administrative operations under the Sugar Board.

“These allocations are meant to support the long-term sustainability of the sugar sector,” said Kagwe.

He said the distribution was informed by consultations with farmers’ groups and industry players.

Kagwe urged support for private investors injecting capital into the sector.

He pointed to West Kenya Sugar’s policy of weekly payments to over 120,000 contracted farmers and consistent monthly salaries for staff.

The company pays out more than Sh14 billion to farmers annually and channels Sh7 billion into cane development.

Data from the Agriculture and Food Authority indicates that by the end of September 2024, nearly half of Kenya’s sugarcane farming land was under the management of Rai Group, highlighting its role in the industry.

He also directed the Sugar Board to initiate talks to create and enforce zonal boundaries among millers to prevent disputes.

He advised farmers to harvest mature cane only, saying sugar quality and market competitiveness depend on proper harvesting practices.

Kagwe also visited Butali Sugar Mills in the county as part of his assessment of private millers’ contribution to ongoing reforms in the sugar sector.