President William Ruto has rolled out Kenya’s first-ever Sugar Bonus Programme, disbursing KSh150 million to sugarcane farmers who have supplied cane to Mumias Sugar Factory in Kakamega County.
This landmark initiative is a testament to ongoing reforms aimed at reviving the sugar sector and improving the livelihoods of thousands of farmers.
Speaking at the launch, President Ruto highlighted that Kenya achieved a record production of 832,000 tonnes of sugar in 2024, positioning the country on the path to surplus production by 2026.
The surplus will pave the way for regional exports, transforming sugarcane farming into a profitable venture.
“This historic payout not only validates our reforms but also demonstrates the potential of agriculture to uplift livelihoods. By 2026, we aim to make Kenya a net sugar exporter,” the President stated.
Reform Milestones in the Sugar Sector
President Ruto emphasized that the KSh117 billion debt write-off, the clearance of KSh1.7 billion in farmers’ arrears, and KSh650 million owed to employees were pivotal in revitalizing the sector. Additionally, the recently assented Sugar Act 2024 will establish sugarcane catchment areas to streamline supply chains and boost efficiency in milling operations.
To enhance productivity, the government is increasing the distribution of subsidized fertilizer from 700,000 bags in 2024 to one million bags in 2025. The bonus payments will also be tied to sugarcane quality and weight, ensuring fairness and transparency.
“Half of the annual rent paid to the bank will now go directly to farmers as bonuses, based on the volume of sugarcane supplied. This model can be extended to other publicly-owned sugar mills once leased,” the President explained.
Tackling Challenges in the Sector
The government plans to eliminate cartels in the sugar industry by enforcing new regulations under the Sugar Act 2024. Cane Testing Units will also be introduced to ensure farmers receive additional payments for high-quality produce.
President Ruto assured farmers of timely payments, noting that those supplying Mumias Sugar Factory are already paid within seven days—a remarkable improvement in the industry.
Universal Reforms and Vision for Kenya
Beyond the sugar industry, the President reiterated his commitment to fulfilling campaign promises, including affordable housing and universal healthcare. He criticized opposition to the Social Health Authority, clarifying that the new health insurance scheme is designed to support vulnerable Kenyans.
Deputy President Kithure Kindiki highlighted the government’s investment in critical value chains such as agriculture, livestock, and fisheries to improve livelihoods.
National Assembly Speaker Moses Wetang’ula lauded the reforms, describing Mumias Sugar Factory as a once-thriving model of rural agronomy. He expressed optimism that the new measures would eliminate cartels and restore the sector’s glory.
The event was attended by high-profile leaders, including Prime Cabinet Secretary Musalia Mudavadi, Cabinet Secretary Wycliffe Oparanya, and Governors Fernandes Barasa and Ken Lusaka, underscoring the importance of the sugar sector to Western Kenya’s economy.
This transformative programme is set to energize Kenya’s agricultural economy and secure the livelihoods of thousands of farmers, reaffirming the government’s commitment to sustainable development.
