The directive, issued on Saturday, April 25, 2026, follows deliberations by the Interim Sugarcane Pricing Committee held on April 17 and April 24, 2026.
According to the board, the revised price was reached after consultations aimed at balancing farmer earnings, miller sustainability, and prevailing market conditions.
Acting Chief Executive Officer Jude Chesire confirmed the new pricing structure, instructing all sugar millers to comply and ensure prompt payments to farmers.
Acting Chief Executive Officer Jude Chesire confirmed the new pricing structure, instructing all sugar millers to comply and ensure prompt payments to farmers.
The affected millers include major players such as West Kenya Sugar Company, Kibos Sugar and Allied Industries, Butali Sugar Mills, and Mumias Sugar Company.
The board noted that the previous rate of Ksh5,750 per tonne had been revised downward after extensive review of market dynamics, including increased sugar production and availability of cane across the country.
The board noted that the previous rate of Ksh5,750 per tonne had been revised downward after extensive review of market dynamics, including increased sugar production and availability of cane across the country.
Despite the cut, officials argued that Kenya’s cane price remains relatively high compared to neighbouring countries.
“This new price is comparatively high in the region. Millers are required to adhere to the new minimum cane price while ensuring timely payments to farmers,” the board stated.
The decision has sparked concern among cane farmers, who had been expecting better returns following rising production costs.
“This new price is comparatively high in the region. Millers are required to adhere to the new minimum cane price while ensuring timely payments to farmers,” the board stated.
The decision has sparked concern among cane farmers, who had been expecting better returns following rising production costs.
Many growers argue that the reduction will strain household incomes and reduce incentives for cane farming, especially in key sugar-growing regions.
However, the government has defended the move, saying it was necessary to stabilize the industry. The Ministry of Agriculture and Livestock Development, led by Cabinet Secretary Mutahi Kagwe, said the adjustment was informed by consultations under the 4th Interim Sugarcane Pricing Committee.
According to the ministry, sugar prices in the market have fallen in recent months, with a 50kg bag now retailing between Ksh6,000 and Ksh6,100.
However, the government has defended the move, saying it was necessary to stabilize the industry. The Ministry of Agriculture and Livestock Development, led by Cabinet Secretary Mutahi Kagwe, said the adjustment was informed by consultations under the 4th Interim Sugarcane Pricing Committee.
According to the ministry, sugar prices in the market have fallen in recent months, with a 50kg bag now retailing between Ksh6,000 and Ksh6,100.
Officials said the price review was meant to ensure millers remain operational while preventing a sharp income drop for farmers.
The ministry also revealed that some millers had pushed for a lower price of Ksh5,000 per tonne, but the government settled on Ksh5,500 to cushion farmers from a steeper reduction.
Despite the explanation, the move is expected to reignite debate over the long-standing challenges facing Kenya’s sugar sector, including inefficiencies in state-owned mills, fluctuating policy decisions, and mounting debts.
Industry stakeholders are now calling for long-term reforms to stabilize pricing mechanisms and improve transparency in the sector, warning that frequent price adjustments continue to undermine planning for both farmers and processors.
The ministry also revealed that some millers had pushed for a lower price of Ksh5,000 per tonne, but the government settled on Ksh5,500 to cushion farmers from a steeper reduction.
Despite the explanation, the move is expected to reignite debate over the long-standing challenges facing Kenya’s sugar sector, including inefficiencies in state-owned mills, fluctuating policy decisions, and mounting debts.
Industry stakeholders are now calling for long-term reforms to stabilize pricing mechanisms and improve transparency in the sector, warning that frequent price adjustments continue to undermine planning for both farmers and processors.
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