Ruto warns sugar cartels

Kenya Sugar Board stand at the Agricultural Show of Kenya. [Benard Orwongo, Standard]

President William Ruto has threatened to take action against individuals he accused of frustrating the reconstitution of the Kenya Sugar Board.

President Ruto said their court battles have left about Sh4 billion in sugar levy collections unavailable for projects intended to benefit farmers.

Speaking during the Agriculture and Food Security Presidential Town Hall at Jamhuri Park in Nairobi on Thursday, Ruto claimed individuals he had previously removed from the sugar sector had regrouped and were now attempting to hold the industry hostage through legal challenges.

The President said the money collected through the sugar levy was intended to finance critical interventions, including improving roads in sugar-growing areas, developing and distributing seed cane to farmers and supporting research into higher-yielding varieties.

“We have collected about Sh4 billion from the sugar levy to ensure we have passable roads, develop seed cane and supply seed cane to farmers and ensure there is research on better varieties of cane for development,” Ruto said.

But he said the funds could not be deployed because of the dispute surrounding the Kenya Sugar Board.

“Unfortunately, we have not been able to use this money because the characters that I chased have gone to regroup again,” Ruto said.

His remarks come against the backdrop of prolonged litigation over the constitution and functioning of the board. Court records show that disputes over the implementation of the Sugar Act, 2024, and the election of grower representatives have resulted in interim orders affecting the board's operations.

The Sugar Act, 2024 provides for a Sugar Development Levy of up to four per cent on domestic sugar and four per cent of the CIF value of imported sugar.

The law sets out how the levy should be distributed, including funding cane development, research, factory rehabilitation, infrastructure and farmers' organisations.

Ruto accused unnamed individuals of pursuing personal interests at the expense of farmers and the wider industry, insisting that growers should have the opportunity to elect their representatives to the board.

“Nyinyi ambao mmezungusha Kenya Sugar Board in court, I want to warn you, you cannot hold hostage a whole industry for purposes of your own selfish interests,” he said.

The President then delivered his strongest warning, promising to intervene if the impasse continues.

“So mnipatie tu nafasi kidogo nitafute nyundo, because hii Kenya kuna watu hawaelewi another language, wacha nitawashughulikia ndio tukuwe na board,” he said.

The confrontation comes as sugar farmers continue to demand a functioning regulatory framework, timely payments and an end to what they describe as cartels in the sector.

Farmers have previously threatened nationwide protests over delays surrounding elections for the board, with some accusing various actors of using court cases to frustrate the process.

The dispute is significant because the board is expected to play a central role in regulating the sugar industry, supporting growers and overseeing the utilisation of the development levy.

Parliament says the board is also mandated to set industry standards, facilitate domestic and international sugar trade, regulate prices and provide advisory support to farmers.

Ruto's intervention therefore places the stalled board at the centre of his administration's broader push to revive the sugar industry and reduce Kenya's dependence on imported sugar.

The President has separately said sugar production has increased from 500,000 tonnes in 2022 to about 850,000 tonnes this year, with a target of one million tonnes next year and net exporter status by 2029.