The safeguard, which expired on November 30, 2025, had allowed Kenya to restrict sugar imports from the COMESA region while implementing reforms aimed at stabilising and restructuring the domestic industry.
Its conclusion signals the government’s confidence that the sector is now better positioned to compete in a liberalised regional market.
In a statement issued on Sunday, Kenya Sugar Board (KSB) Chief Executive Officer Jude Chesire said the safeguard had served its intended purpose and should not be viewed as a withdrawal of protection but rather as the completion of a long reform process.
“The Government of Kenya has formally exited the COMESA Sugar Safeguard regime after 24 years, marking a decisive and confident transition for the country’s sugar industry,” Chesire said.
In a statement issued on Sunday, Kenya Sugar Board (KSB) Chief Executive Officer Jude Chesire said the safeguard had served its intended purpose and should not be viewed as a withdrawal of protection but rather as the completion of a long reform process.
“The Government of Kenya has formally exited the COMESA Sugar Safeguard regime after 24 years, marking a decisive and confident transition for the country’s sugar industry,” Chesire said.
“The safeguard was a temporary, reform-driven instrument that has now achieved its objectives.”
From protection to competitiveness
Kenya first sought the sugar safeguard in 2001 under Article 61 of the COMESA Treaty, citing inefficiencies, outdated factories and financial instability among millers.
From protection to competitiveness
Kenya first sought the sugar safeguard in 2001 under Article 61 of the COMESA Treaty, citing inefficiencies, outdated factories and financial instability among millers.
Over the years, the country secured eight extensions, each tied to specific reform benchmarks set by the COMESA Council of Ministers.
According to KSB, those benchmarks have now been met, allowing the sector to move from protectionism to competitiveness.
According to KSB, those benchmarks have now been met, allowing the sector to move from protectionism to competitiveness.
Policy focus has shifted toward efficiency, value addition and diversification rather than shielding local producers from regional competition.
Chesire noted that sugarcane is increasingly viewed globally as an industrial raw material rather than a single-use crop.
Chesire noted that sugarcane is increasingly viewed globally as an industrial raw material rather than a single-use crop.
Beyond table sugar, cane by-products such as ethanol, electricity generated from bagasse, paper, board and industrial alcohols now account for a growing share of value in the industry.
He said Kenya is already embracing this model, with the Sugar Board supporting millers to diversify production in order to stabilise revenues, improve farmer payments and reduce reliance on sugar sales alone.
The exit from the safeguard comes against the backdrop of a notable recovery in sugarcane production.
He said Kenya is already embracing this model, with the Sugar Board supporting millers to diversify production in order to stabilise revenues, improve farmer payments and reduce reliance on sugar sales alone.
The exit from the safeguard comes against the backdrop of a notable recovery in sugarcane production.
KSB data shows that sugarcane acreage has expanded by 19.4 per cent, from 242,508 hectares to 289,631 hectares.
Over the same period, sugar output rose sharply by 76 per cent, increasing from 472,773 metric tonnes in 2022 to 815,454 metric tonnes.
Over the same period, sugar output rose sharply by 76 per cent, increasing from 472,773 metric tonnes in 2022 to 815,454 metric tonnes.
The recovery has been attributed to favourable weather conditions, improved access to certified seed cane and fertiliser subsidy programmes.
Despite the gains, domestic production still falls short of national demand, estimated at about 1.1 million metric tonnes annually.
Despite the gains, domestic production still falls short of national demand, estimated at about 1.1 million metric tonnes annually.
As a result, Kenya will continue to supplement local supply through controlled imports from COMESA member states and other approved sources.
“Capacity expansion, factory rehabilitation and newly leased mills will take time to fully optimise,” Chesire said, adding that imports remain necessary to stabilise prices and prevent shortages.
Structural reforms underpin transition
The sugar sector has undergone what KSB describes as “deep and irreversible structural reforms,” including the long-term leasing of formerly state-owned mills to private investors.
“Capacity expansion, factory rehabilitation and newly leased mills will take time to fully optimise,” Chesire said, adding that imports remain necessary to stabilise prices and prevent shortages.
Structural reforms underpin transition
The sugar sector has undergone what KSB describes as “deep and irreversible structural reforms,” including the long-term leasing of formerly state-owned mills to private investors.
The move was intended to improve operational efficiency, professional management and accountability in a sector long plagued by mismanagement and debt.
Chesire emphasised that exiting the safeguard does not signal the end of government support. Instead, it aligns with ongoing reforms and provides greater certainty for investors, farmers and millers operating in a more open market environment.
Concerns remain over climate variability, which continues to affect output through droughts and erratic rainfall.
Chesire emphasised that exiting the safeguard does not signal the end of government support. Instead, it aligns with ongoing reforms and provides greater certainty for investors, farmers and millers operating in a more open market environment.
Concerns remain over climate variability, which continues to affect output through droughts and erratic rainfall.
However, KSB maintains that the medium-term outlook is positive, with Kenya projected to meet domestic demand and potentially generate surpluses for regional export.
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