The government will open a special import window for raw sugar to address a biting shortage of industrial sugar, a move aimed at reviving idle factories and stabilising the manufacturing sector.
Investments, Trade and Industry Cabinet Secretary Lee Kinyanjui said Kenya faces a deficit of nearly 400,000 metric tonnes of sugar, which has left billions of shillings in investments unutilised.
He explained that the imports will be restricted to raw sugar for refining into industrial sugar used in food, beverages, pharmaceuticals, and distilleries.
Speaking during a visit to Kibos Sugar and Allied Industries in Kisumu on Thursday, Mr. Kinyanjui — accompanied by Principal Secretaries Dr. Juma Mukhwana (Industry) and Regina Akoth (Trade) — said the intervention will help lower the cost of industrial sugar imports while safeguarding local producers.
“We don’t have enough raw sugar to process industrial sugar. As a result, factories such as this one in Kibos, which cost more than Sh2 billion to set up, have not worked since 2016,” he said.
The CS stressed that the measure is temporary as the government rolls out a programme to boost cane production in partnership with farmers and counties, targeting self-sufficiency within two to three years.
He added that sugar factories will be closely monitored to ensure reliable cane supply through grower schemes.
Mr. Kinyanjui assured stakeholders that the imports will only serve industrial sugar needs and will not interfere with raw sugar production for domestic consumption.
“Importation does not mean we suspend our regulations. There are mechanisms for quality control, and this will be followed to the letter,” he said.
He further noted that while imports would plug the current gap, the government’s priority remains protecting local industries, creating jobs, and conserving foreign exchange.
Kibos Sugar and Allied Industries Managing Director Bhire Chatthe welcomed the move, noting that the company’s Sh2 billion refinery requires 165,000 metric tonnes of raw sugar annually to run optimally.
He said the firm’s past applications to import sufficient quantities had been restricted, leaving the refinery idle.
“Fully activating the refinery could save Kenya up to Sh20 billion in imports, create jobs, and increase tax revenues,” Mr. Chatthe said, adding that the company has consistently adhered to national quality standards.