In a statement, Agriculture Principal Secretary Paul Ronoh said the minimum price will now be capped at Sh5,300 per tonne up from Sh5,000.
The change, made by the 4th Interim Sugarcane Pricing Committee appointed on January 9, is effective February 10, he said.
The price adjustment follows a meeting held by the committee on February 7, 2025.
“You are hereby requested to adhere to the new minimum cane price while making payments to the farmers on time,” said Ronoh as he directed all millers to adhere to the new prices.
The Sugarcane Pricing Committee is an autonomous committee comprising the Agriculture and Food Authority (AFA), the Ministry of Agriculture, farmers, millers and members from the sugar-producing counties.
Last month, President William Ruto launched the first-ever sugarcane bonus programme for Mumias Sugar Factory as part of the government's efforts to ensure the growth of the sugar sector.
Expressing commitment to revive the industry, Ruto pointed out that the reforms carried out in the have yielded significant results.
He pointed out that the writing off of Sh117 billion in debts, including the payment of Sh1.7 billion in farmers’ arrears and Sh650 million owed to employees, was part of the effort to revive the sector.
In line with other measures outlined in the 2019 Sugar Taskforce, President Ruto said he had assented to the Sugar Act 2024 that establishes sugarcane catchment areas to better manage supply, synchronise milling operations and improve efficiency.
“We have asked the new Cabinet Secretary for Agriculture Mutahi Kagwe, who is here with us today, to finalise regulations to operationalise the Sugar Act to provide clarity and get rid of cartels in the sector,” he said.
The Sh150 million bonus was meant for the farmers who have supplied cane to Mumias factory, being the first such payment in the sector.
According to the Head of State, the historic bonus payment not only validates the success of the reforms introduced in the sector but is also evidence of the potential to uplift farmers and support tens of thousands of livelihoods.
“With a record 832,000 tonnes of sugar produced last year, Kenya is on course to attaining surplus production and commence regional exports by 2026, turning sugarcane cultivation into a viable and rewarding venture,” he said.
