The Government of Kenya has officially exited the COMESA Sugar Safeguard regime after 24 years, marking a major shift for the country’s sugar industry. The safeguard, which expired on November 30, 2025, was introduced as a temporary measure to protect and reform the sector.
Kenya Sugar Board CEO Jude Chesire said the exit shows the strength and stability of the industry, not weakness. He assured farmers, millers, workers and investors that the sector is now better prepared to compete fairly in the regional market.
“Kenya’s sugar industry is stable, well managed and guided by clear policies. Leaving the safeguard does not expose the sector to risk but shows it is ready to compete,” Chesire said.
Over the years, the Kenya Sugar Board, under the Ministry of Agriculture and Livestock Development, has shifted focus from protection to competitiveness. The emphasis is now on value addition, efficiency and diversification.
Globally, sugarcane is increasingly treated as an industrial raw material rather than just a source of table sugar. Many countries earn more by producing ethanol from molasses, generating electricity from bagasse, and making paper, industrial alcohol and other products. These activities lower production costs and help exporters sell sugar at lower prices.
Chesire said Kenya is following this model by supporting millers to diversify into sugar by-products. This has helped improve cash flow for factories and ensure more stable payments to farmers, reducing dependence on table sugar alone.
The sugar subsector has recorded strong recovery in recent years. Sugarcane acreage increased by 19.4 per cent, from 242,508 hectares to 289,631 hectares, supported by good rainfall, better access to certified seed cane and fertiliser subsidies. Sugar production rose by 76 per cent, from 472,773 metric tonnes in 2022 to 815,454 metric tonnes currently.
Kenya’s annual sugar demand is about 1.1 million metric tonnes. While local production has improved significantly, some factories are still expanding or undergoing rehabilitation. For this reason, the country will continue to import sugar from the COMESA region and other approved sources to meet demand.
The Kenya Sugar Board said imports will be managed carefully and transparently to protect consumers, support local producers and maintain food security. Population growth and unpredictable sugar surpluses in the region also make controlled imports necessary.
Chesire noted that sugar production remains affected by weather conditions. Dry spells may reduce output temporarily, while good rainfall is expected to boost production. These factors are considered in ongoing planning and market management.
Looking ahead, the medium-term outlook for the sector is positive. With improved farm productivity and expanded factory capacity, Kenya is expected to meet domestic demand and eventually produce surplus sugar for export within the region.
The sector has also undergone major reforms, including leasing former state-owned sugar mills to private operators. This move was aimed at improving efficiency, professionalism and accountability. The long-term leasing model allows investors time to stabilise operations while benefiting from government support and predictable trade policies.
“The exit from the safeguard does not mean reduced support. The Kenya Sugar Board will continue to regulate the sector, coordinate markets and protect farmers to ensure sustainability,” Chesire said.
Kenya first applied for the Sugar Safeguard in 2001 when the COMESA Free Trade Area was launched. At the time, the industry needed protection to carry out reforms. Over 24 years and eight extensions, Kenya met strict conditions set by COMESA, including productivity improvements, infrastructure development and sector restructuring.
The end of the safeguard marks the completion of these reforms. Kenya now enters a new phase focused on competitiveness, value addition, regional trade and long-term growth.
“The government remains committed to protecting farmers, supporting millers and ensuring stable sugar prices and food security within the COMESA Free Trade Area,” Chesire said.
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