President William Ruto's cabinet has sanctioned an extension for the duty-free importation of milled sugar.
Through a Cabinet dispatch, the move is said to bridge the supply deficit of sugar in the country.
"This will address the high retail price of sugar-fueled by an acute cane shortage in the country," the statement reads.
Additionally, the Cabinet also approved the programme for the revival and commercialisation of State-owned sugar companies.
The sugar companies are, Nzoia, Chemelil, Miwani, Muhoroni, South Nyanza and Mumias.
"Today’s decision sets the Sugar Sub-Sector on a path of renewal by vacating the earlier decision by Cabinet to privatise State-owned entities within the sub-sector," a statement reads.
If Parliament approves the proposal by Cabinet the State-owned entities would be operated under a lease and operating framework.
The sugar prices in the country have skyrocketed, and President Ruto revealed the hike has been occasioned by confusion and fights within the sugar subsector.
However, Ruto said the government is working to streamline things in the sectors.
"We've had confusion and chaos in the whole sugar sub-sector and we are streamlining that sector because the whole sugarcane sector has been riddled with all manner of confusion and poaching of sugarcane from one corner to another," Ruto said.
"The other is everybody is refusing to work in accordance with the law in fact the reason why many sugar companies have closed shop temporarily is because there is no cane to harvest. They were even harvesting cane that is not mature."
Two kilogramme of sugar now retails at Sh430, up from Sh200 a few months ago.
