Members of the National Assembly have approved the Mediated Version of the Sugar Bill (National Assembly Bill No. 34 of 2022), which seeks to revitalize Kenya’s sugar industry.  

Addressing the House on 17th October 2024, Hon. Emmanuel Wangwe, Chairperson of the Mediation Committee on the Sugar Bill said, “This Bill introduces comprehensive reforms, including the establishment of the Kenya Sugar Board, designed to regulate, develop, and promote the industry. It also defines sugar catchment areas.”  

Lawmakers noted that one of the key provisions of the Bill is the delineation of sugar catchment areas, into geographical areas including Central region covering Kisumu, Southern Nandi, and Kericho Counties as well as Upper Western region consisting of Bungoma, Kakamega, Trans- Nzoia, Uasin Gishu, and Northern Nandi Counties. Lower Western Region including Mumias, Busia and Siaya Counties.  

Other catchment areas include Southern Region covering Migori, Homa Bay, Kisii, Narok Counties and Coastal region consisting of Kwale, Tana River, and Lamu Counties. These areas will serve as hubs for sugarcane farmers and millers, promoting efficient collaboration.  

Cane farmers are set to benefit if the Bill is enacted as it introduces provisions for an equitable mechanism for the pricing of sugar crop and appropriation of proceeds from sugar byproducts between millers and farmers and establishment of a Sugar tribunal to mediate disputes relating to cane pricing and contract farming.  

According to Hon. Julius Melly, “This Bill has tried to bring sanity to the sector. On contracting the miller outside the catchment areas, and I am of the opinion that farmers should be free to send their cane anywhere.”  

The Bill also introduces several measures to protect local farmers and ensure fair practices in the sector including a Sugar Development Levy which will be imposed on millers based on the amount of sugar produced, aiming to fund research, development, and training in the sugar industry.  

The Kenya Sugar Board is mandated to ensure that all regional and international trade agreements to which Kenya is a party and all sugar imports into the country are subject to all the prevailing import duties, taxes and other tariffs and sugar shall be imported in the country only when there is sugar deficit and for a specific tonnage.  

The mediated version of the Sugar Bill also mandates the government to introduce other safeguard measures as may be necessary to protect the industry from unfair trade practices.  

Hon. Nabii Nabwera emphasized the importance of safeguarding local farmers by stating, “The fact that we are applying a levy on imported sugar protects the sugar farmers.”  

Additionally, the Bill addresses longstanding issues, such as delayed payments to farmers, with Hon. Jared Okello pointing out, “Farmers are waiting for up to three years to be paid, as well as employees in factories.”  

The Bill also mandates that sugarcane growers to sign supply agreements with millers within their respective catchment areas. However, exceptions can be made under specific conditions, ensuring flexibility for farmers.  

If enacted new Kenya Sugar Research and Training Institute will be established to conduct essential research, such as developing new cane seed varieties that reduce the current seed maturation time to nine months.  

Weighing in, Chairperson of the Agriculture and Livestock Committee, Hon. Dr. John Mutunga pointed out, “No investor wants to invest in a sector if the raw material is not available. We are still using cane seed that takes 19 - 24 months instead 9 months. We have provided for propagation of varieties.”  

MPs lauded progressive provisions on the propagation of new sugarcane varieties and the framework established in the Bill for sugarcane manufacturing. Hon. Kimani Kuria praised its focus on quality control, noting, “The Bill outlines clear guidelines on quality control in the production and marketing of sugar. It emphasizes the protection of farmers, including fair pricing for millers and farmers.” The Bill also seeks to safeguard farmers by regulating the import and export of sugar and sugar products, ensuring the industry's competitiveness in the global market.  

The Bill further proposes to privatize state-owned mills. Hon. Caroli Omondi argued that privatizing mills would free them from political interference, stating, “The sooner we get the government out of our mills, the better. When we privatize these mills, we can shield them from political interference.”