Government told to stop illegal sugar imports

Governor Lusaka when he visited Nzoia Sugar Company. [Jackline Inyanji, Standard]

The government has been asked to end sugar imports into the country to allow local sugar factories to thrive.

Many of the sugar mills are stuck with huge amounts of sugar in their warehouses due to flooded markets with cheap imports.

Speaking after visiting Nzoia Sugar Mill, Bungoma County Governor Kenneth Lusaka said that the factory has more than 250,000 bags of 50Kg lying idle in its warehouse because there is no market for the sweetener.

"We have assessed the status of Nzoia over public outcry. I have witnessed a lot of change; however, we have seen
Over 25,000 bags of sugar are stuck here. I call on government agencies to stop the importation of sugar so that Nzoia can sell its stocks so that farmers can receive their payments promptly. The government must tighten loopholes in importation and stop the cartels who have dominated the sugar sector," Lusaka noted.

He commended the ongoing investments in factory modernisation, farmer support, employment creation and community development, noting that they are laying a strong foundation for the revival and long-term competitiveness of the region's sugar industry.

Nzoia Sugar Company currently employs 1,639 people, making it one of the largest employers in Bungoma County.

Nzoia Sugar Company gate. [Jackline Inyanji, Standard]

Governor Lusaka accused a section of politicians of using the troubled factory to gain mileage, warning that such propaganda would not be tolerated going forward.

"Woe unto those politicians who have used this company for political point-scoring," Lusaka said, adding that as county leadership, they would not entertain any let-down in the miller's operations.

"The priority of our farmers must always come first."

The Governor further challenged the new management to restore Nzoia Sugar to its former glory, describing the miller as the economic heartbeat of Bungoma County.

He raised concerns over delays in the issuance of sugarcane harvesting licenses to farmers due to what he termed rampant corruption involving sugar firms' workers who demand cash from growers before issuing the documents.

Group Head of External Affairs and Communication (Rai Group), George Muruli, has, however, urged farmers to report any case of corruption.

Muruli also called on the government to put in place strategies to stop the importation of sugar from these foreign countries, a situation he says has contributed to the company's sugar not being purchased.

He said structural challenges that continue to undermine the sugar sector in Bungoma County, and which require urgent legislative, regulatory, and policy intervention, include smuggled sugar flooding the domestic market.

Some of the sugar packed at the Nzoia sugar warehouse. [Jackline Inyanji, Standard]

Muruli said the vice has been depressing prices and severely weakening the competitiveness of Nzoia Sugar and other compliant local producers who bear higher production and tax costs.

"The influx of illegal sugar in the market has affected the operations of most companies. We have stagnant or stationary stock that's not moving. We have enough stock that can serve domestic and enable the company to run smoothly; however
" Illegal sugar is affecting the market," he noted.

It was further noted that zoning has dominated the sugar sector debate and should be explained properly so that farmers understand where to supply their cane

"The absence of clearly demarcated boundaries between sugar catchment zones creates operational inequities, allowing some millers to operate across multiple zones while Nzoia is restricted to its defined area. This exposes Nzoia’s contracted and developed cane to unlawful poaching. Repeated operational disruptions caused by cane poaching and immature harvesting have far-reaching consequences for Bungoma County, including abrupt job losses," he noted.

He added, "Strengthen border controls and enforcement through coordinated efforts by the Kenya Revenue Authority, security agencies and local administration to eliminate illegal sugar imports that distort market prices," he noted.

The miller reaffirmed its commitment in furtherance of a sustainable sugar sector and in the public interest of Bungoma County and the wider Western Kenya Region by maintaining full and transparent milling operations and making prompt payments.

Nzoia Sugar Company Chief Executive Officer Mr Sohan Sharma said the company has made significant investments to modernise the factory and restore operational efficiency following years of underperformance.

"Since milling resumed on 3 January 2026, the factory has crushed more than 292,980 tonnes of sugarcane supplied by over 14,061 farmers, while paying farmers more than Sh1.096 billion, underscoring the company's commitment to prompt and reliable payments," he noted

Mr Sharma noted that although the factory has an installed milling capacity of 3,000 tonnes of cane per day (TCD), it is currently crushing approximately 1,900 TCD, with a monthly average of 2,046 TCD, as efforts continue to increase cane availability.

The factory rehabilitation programme covered all major production units, including the pre-mill section, mill house, boiling house, boilers, turbines, electrical systems, instrumentation and civil works.

The company also installed a modern Distributed Control System (DCS), a fully automated Smart Weighment System, new centrifugal machines, upgraded process equipment, and completely refurbished the factory's power generation systems.

To enhance transparency and strengthen farmer confidence, Nzoia Sugar has fully digitised its cane procurement and payment processes.

"Farmers now receive automated SMS notifications when tractors are dispatched to collect their cane and immediately after the cane is weighed, enabling them to track deliveries and verify tonnage in real time. Payments for cane delivered during the week are processed every Friday through a secure automated approval system," he noted.

Addressing concerns frequently raised by farmers regarding cane pricing, Mr Sharma clarified that sugarcane prices are determined by the government through the Kenya Sugar Board and the Cane Pricing Committee, and not by individual millers. He emphasised the importance of continued farmer sensitisation to enhance understanding of the national cane pricing framework.

He noted Nzoia Sugar has so far contracted 24,500 acres under out-grower farming and requires an additional 19,000 acres to fully utilise the factory's installed milling capacity.

Beyond sugar production, Nzoia Sugar continues to invest in community development through support for local schools, sponsorship of Nzoia Sugar Football Club, rehabilitation of roads within the sugar belt, construction of boda boda sheds, and provision of clean water during community events.