For decades, sugarcane farmers in Kenya have endured one of the most challenging journeys in modern agriculture. Year after year, they toil in the fields, only to face delayed payments, poor returns, and exploitation by millers. Their labour feeds an industry that has remained stagnant while the rest of the world’s sugar economies have evolved into complex, profitable, and sustainable systems.
In countries like Brazil and India, sugarcane is no longer treated merely as a crop for sweetening tea or baking cakes. It is the raw material of a broader industrial vision, one that produces not only sugar but also ethanol, electricity, and other bioproducts. This modern, diversified approach has turned sugarcane into a source of employment, wealth, energy, and environmental sustainability. Meanwhile, Kenya continues to rely on a narrow system that extracts only sugar, leaving behind vast untapped potential.
Brazil provides perhaps the most compelling example of what Kenya’s sugar sector could become. The South American giant transformed its mills into biorefineries, that is, factories that process sugarcane into multiple valuable products. From the sweet juice comes sugar; from the fibrous residue, known as bagasse, comes bioethanol and electricity. Almost nothing is wasted. Ethanol fuels vehicles, while electricity from bagasse powers both the mills and the surrounding communities. In essence, they have maximised every part of the cane. Brazil has managed to lower its production costs, stabilise sugar prices, and generate additional income for its producers.
The results are staggering. For the current harvest season, the average cost to produce sugarcane in Brazil was approximately $205 per ton. The country remains one of the most efficient sugar producers globally. Favourable weather, large-scale mechanisation, and advanced agricultural technology all contribute to Brazil’s success. However, the real secret lies in its integrated approach, which combines agriculture with energy production and industrial innovation.
India has followed a similar path, adapting it to its own economic structure. The Indian government guarantees farmers a Fair and Remunerative Price (FRP) for their sugarcane, ensuring they earn a stable income. At the same time, mills offset the cost of production by producing ethanol and other by-products. On average, the industrial price of sugarcane production in India is approximately $470 per ton. Like Brazil, India channels excess cane into its ethanol blending program, reducing waste and stabilising both the sugar market and farmer incomes. It is an elegant balance of social protection and industrial pragmatism.
Africa, by contrast, paints a different picture, one marked by inefficiency and high costs. The continent’s sugar production costs vary widely, but Kenya stands out for all the wrong reasons. While South African growers produce sugarcane at a cost of roughly $333 per ton, Kenya’s total production and processing cost exceeds $1,000 per ton. This makes Kenyan sugar among the most expensive in the world. The reasons are clear: outdated mills, poor logistics, reliance on manual labour, and, according to recent reports, inconsistent government policies that have failed to modernise the sector. A 2021 master plan to scale up ethanol production has not been fully implemented, leaving the country to rely on small and unreliable plants.
However, Kenya’s most significant missed opportunity may lie in its refusal to diversify. For decades, policymakers and farmers alike have focused exclusively on sugarcane, overlooking the potential of sugar beet, a crop that could thrive in many of Kenya’s semi-arid regions. Sugar beet requires less time to mature, harvests can occur more than once a year, and though its yield per hectare is smaller than sugarcane’s, its shorter production cycle and lower water needs make it an up-and-coming alternative.
North African countries, such as Morocco, have already proven that sugar beets can be a game-changer. Despite being among the driest nations in the region, Morocco produces sugar from beet at costs far below those of cane sugar in Kenya; the secret lies in irrigation, efficient processing, and targeted investment in technology. Kenya, too, possesses vast stretches of dry land sitting atop underground water reserves. Regions like Baringo, Isiolo, Turkana and Marsabit could become new sugar hubs if the country invested in research, irrigation, and pilot projects for sugar beet farming.
The story of Kenya’s sugar industry is also one of policy failure. For years, the sector has been weighed down by protectionism, corruption, and short-term political interests. Government bailouts and subsidies may offer temporary relief, but they do little to address the fundamental issues of productivity, technology, and market structure. Worse still, the abolition of European Union sugar quotas in 2017 left African exporters vulnerable to fierce competition without the necessary reforms to compete globally. While others adapted, Kenya stayed still.
Yet, hope is not lost. Kenya has the potential to turn its sugar crisis into an opportunity for transformation. The country can reimagine its sugar mills as bio-industrial complexes and plants that generate sugar, ethanol, and renewable electricity. Such facilities could use bagasse to power local grids and molasses to produce ethanol for fuel blending. This would not only create new revenue streams but also align with Kenya’s vision for green energy and sustainable industrialisation.
At the same time, introducing sugar beet farming in semi-arid areas could relieve pressure on fertile lands currently dominated by sugarcane. Beet cultivation could revitalise rural economies, create employment, and ensure year-round production. To make this happen, the government must invest in research, farmer training, and infrastructure, especially irrigation and processing facilities. Partnerships between research institutions, private investors, and local communities would help transfer the knowledge and technology needed to make the shift successful.
Policy consistency will also be key. Abrupt policy reversals, political interference, and a lack of accountability have plagued Kenya’s sugar industry. A long-term, evidence-based strategy, one that rewards efficiency, supports innovation, and encourages competition, is essential. If pricing models are revised to compensate farmers while incentivising mills to invest in modernisation fairly, Kenya could finally unlock the industry’s dormant potential.
In truth, Kenya’s sugar industry does not need to be scrapped; it needs to be reimagined and revitalised. The lessons from Brazil, India, and North Africa are clear. The future of sugar lies not in the crop itself but in how it is processed, diversified, and linked to other sectors of the economy. Kenya can craft a sugar industry that is both profitable and sustainable; however, that requires moving beyond sugarcane alone and embracing the possibilities of sugar beets, biofuels, and renewable energy.
For too long, Kenyan farmers have laboured under a system that gives them crumbs while others enjoy the feast. The time has come for a new model that values innovation, rewards hard work, and ensures that every drop of sweat in the cane fields translates into fair income and national prosperity. The path forward is not just about producing sugar; it’s about creating value.
Co-authored with Ambassador Professor Bitange Ndemo as part of a series on Value Chain Productivity and Innovation