All Leased Sugar Mills to Be Operational by October: Sugar Board

Nairobi, Kenya — September 27, 2025 (EAT).

The Sugar Board of Kenya (SBK) has announced that every privately leased sugar mill in the country is expected to resume operations by October 2025, resolving a protracted disruption in sugar production that has caused shortages and harmed millers and farmers alike.

The Latest

• The SBK issued a statement saying that all negotiated lease agreements for idle sugar mills are now in the final implementation phase, and logistical, maintenance, and staffing obstacles are being resolved.

• The board indicated that the mills will gradually ramp up to full capacity, with preliminary production expected soon after restart.

• The move follows pressure from farmers, cooperatives, and sugar belt counties to inject life into the comatose sugar sector, which has long been plagued by inefficiency, debt, and mismanagement.

Background & Context

• Over the past decade, many sugar mills in Kenya have ceased operations due to financial distress, poor management, lack of cane supply, outdated technology, and operational losses.

• In recent reforms, the government has pushed for private sector leasing of idle mills under public-private partnership arrangements, hoping to revive operations without the state bearing full costs.

• Several lease contracts were signed in 2024 and 2025, but delays in renovation, capital infusion, regulatory approvals, and deployment of workforce held back full operations.

• Farmers in counties such as Kakamega, Siaya, Bomet, Kisii, Migori, and Busia have suffered from non-payment, reduced cane deliveries, and rising transport costs to distant mills.

Challenges to Watch

• Sufficient supply chain: Mills need reliable cane delivery systems, including farmers planting enough cane within proximity and reliable transport networks.

• Capital and equipment: Many of the mills require significant rehabilitation, repair, and modernization before they can operate efficiently.

• Regulatory approvals: Environmental, audit, and safety inspections must be cleared before commissioning.

• Labor and management: Sourcing skilled workforce and management teams to run the mills under performance contracts will be key.

• Cost vs price pressures: Global sugar prices, local input costs, energy, and logistics remain volatile and could affect margin viability.

Implications

• Boost for farmers: Resumption means farmers will have nearer markets to deliver cane, reducing transport losses and improving incomes.

• Sugar supply stability: Restarting mills could help reduce sugar shortages and cut import dependence.

• Revival of regional economies: Towns around mills will see renewed economic activity—employment, trade, services.

• Investor confidence: Success of these leased mills may attract further investment in the agricultural-industrial sector if performance is credible.

• Risk of failure: If some mills underperform or break down again, confidence will be shattered, and future reforms may stall.