On January 20, 2025, President William Ruto unveiled a KSh150 million bonus for sugar farmers supplying cane to Kakamega’s Mumias Sugar Factory, marking a significant milestone for the sector.
This bonus is a testament to the successful reforms implemented in the sugar industry, aiming to uplift farmers and bolster livelihoods across the region.
During the launch, President Ruto highlighted that last year’s production reached a record 832,000 tonnes, positioning Kenya to achieve surplus production and initiate regional exports by 2026. He emphasized the importance of these reforms, which included writing off KSh117 billion in debts and settling KSh1.7 billion in farmers’ arrears.
The President also announced the enactment of the Sugar Act 2024, which establishes sugarcane catchment areas to streamline supply and enhance milling efficiency. He tasked the new Cabinet Secretary for Agriculture, Mutahi Kagwe, with finalizing regulations to eliminate cartels and ensure transparency in the sector.
Under the new model, 50% of annual bank rent will be distributed as bonuses to farmers based on the quantity of sugarcane supplied. Additionally, the introduction of Cane Testing Units will allow for extra payments based on cane quality.
President Ruto reiterated his commitment to implementing the Kenya Kwanza manifesto, addressing challenges in the sugar sector, and ensuring farmers are compensated promptly. He also defended the Social Health Authority, urging leaders to support universal health coverage instead of misleading the public.
The event was attended by Deputy President Kithure Kindiki, National Assembly Speaker Moses Wetangula, and various local leaders, all praising the government’s efforts to revive the crucial sugar industry in western Kenya.
