KENYA: President Ruto Unveils Kenya’s First Sugar Farmers’ Bonus Program

          By Lisbeth Micheni,Kenya 

Kenyan President William Ruto, has allocated KSh150 million in bonus payments to sugarcane farmers who supply to Mumias Sugar Company in Kakamega County.

This marks a groundbreaking milestone in Kenya’s sugar sector.

The bonus initiative is the first of its kind in the industry, and is a testament to the reforms aimed at revitalising the sector.

The President noted that the reforms have uplifted farmers and significantly impacted the livelihoods of many households.

“With 832,000 tonnes of sugar produced last year, Kenya is on track to exceed local demand and begin regional exports by 2026, transforming sugarcane farming into a lucrative enterprise,” President Ruto stated.

At the event to inaugurate the payments, the President highlighted the achievements of the sugar industry reforms.

He emphasised the importance of addressing challenges such as the KSh117 billion debt write-off, KSh1.7 billion in farmer payments, and KSh650 million in employee arrears as part of the efforts to rebuild the sector.

He also announced the signing of the Sugar Act 2024, which introduces sugarcane catchment zones to enhance supply chain management, coordinate milling operations, and boost efficiency.

“The newly appointed Agriculture Cabinet Secretary, Mutahi Kagwe, will finalize the regulations to enforce the Sugar Act and eliminate cartels from the sector,” President Ruto added.

To further support farmers, the government is distributing subsidised fertilizer to improve crop yields and boost incomes.

“Last year’s record production of 832,000 metric tonnes is just the beginning.

“We expect continued growth, and by 2026, Kenya will be a net exporter of sugar in the region,” the President remarked.

He explained that the bonus payments would be allocated based on the quantity of sugarcane delivered by each farmer and adjusted according to the performance of the company.

This system, designed for transparency and fairness, could be expanded to other state-owned sugar firms in the future.

To ensure fair compensation, farmers will receive additional payments for cane quality through Cane Testing Units alongside weight-based payments.

The President urged Mr. Kagwe to increase the supply of subsidized fertilizer from 700,000 to one million bags this year to further assist sugarcane farmers.

He also expressed satisfaction that farmers supplying Mumias Sugar are paid within seven days of delivery.

President Ruto reassured Kenyans of his commitment to fulfilling the promises outlined in the Kenya Kwanza manifesto, including affordable housing, universal healthcare, and rejuvenating the sugar sector.

He criticised politicians opposing the Social Health Authority and the new health insurance scheme, emphasising that the program is structured to ensure the wealthy contribute more to support vulnerable citizens.

Deputy President Kithure Kindiki reiterated the government’s investment in key agricultural, livestock, and mining value chains to improve livelihoods.

Speaker of the National Assembly Moses Wetangula, commended President Ruto’s efforts to revitalize the sugar industry, highlighting its critical role in western Kenya’s economy.

The event was attended by key leaders, including Prime Cabinet Secretary Musalia Mudavadi, Agriculture Cabinet Secretary Wycliffe Oparanya, Kakamega Governor Fernandes Barasa, Bungoma Governor Ken Lusaka, and Central Organization Of Trade Unions Secretary-General Francis Atwoli.