Sugar millers have petitioned the government to halt duty free imports and stabilise the local prices to benefit farmers.
The Kenya Sugar Manufacturers Association in a letter to the Treasury PS, urged the government to put in place stringent measures to curb illegal sugar imports.
They raised concerns over unchecked influx of duty free imports, which they said is responsible for the current sugar crisis.
Association CEO Stephen Ligawa said, “Over the past five months, the price of a 50kg bag of local sugar has fallen by more than Sh1,300 from Sh6,300 in March 2023 to Sh5,000 presently. This significant reduction is primarily due to duty free and illegal sugar imports.”
He said at a meeting with the Agriculture PS in May, millers and farmers were assured the government would stop the imports and stabilise the prices.
Contrary to these assurances, he said, the situation keeps worsening each passing day, diminishing the hopes of stakeholders.
“The average cost of production per tonne of sugar is currently higher, implying in the last three months, millers have been making a loss of between Sh18,000 and Sh20,000 for every tonne of sugar produced,” Ligawa said.
He claimed duty free sugar imports have flooded the market and created a false demand and supply.
In the letter, Ligawa said the current scenario has destabilised the cane pricing formula, which has been running effectively for 15 years.
This unsustainable situation, he said, threatens the viability of their businesses and the livelihoods of farmers and is creating deep anxiety in the sector.
“Given the current scenario, we urgently petition you to take immediate action to halt all duty free sugar imports and implement stringent measures to curb illegal sugar imports,” Ligawa said.
The millers also want the government to call for a consultative in-person meeting between the apex bodies of millers and farmers, and the PS and CS of the National Treasury and the Ministry of Agriculture.
“Prompt action by the National Treasury will not only stabilise the local sugar market but also reaffirm the government's commitment to supporting and safeguarding the interests of sugar industry stakeholders,” Ligawa said.
Without these critical interventions, the CEO said the future of the industry looks bleak.
“We trust that you will give this matter the urgent attention it deserves and take decisive action to protect our industry,” he said.
The letter was copied to Agriculture PS, Agriculture and Food Authority chairman and director AFA or Sugar Directorate.
