Government raises sugarcane prices by Sh250
Business
By
Betty Njeru
| Jul 26, 2025
Sugarcane traders display their produce at Ekerorano in Bonchari, Kisii County. [Sammy Omingo, Standard]
The government has raised the price of sugarcane by Sh250, setting the new minimum at Sh5,750 per tonne, effective July 21.
According to a circular seen by The Standard, Agriculture Principal Secretary Kipronoh Ronoh directed all stakeholders to implement the new pricing immediately and ensure timely payments to farmers.
"Having considered the prevailing ex-factory sugar prices over the past three months (April-June 2025), the committee approved an increase in the cane price from Sh5,500 to Sh5,750 per tonne, effective July 21," Ronoh said.
"You are hereby requested to adhere to the new minimum price while making payments to farmers on time."
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This is the second increment this year. In May, the government raised the minimum price from Sh5,300 to Sh5,500 per tonne.
The decision follows a meeting of the Sugarcane Pricing Committee held last Thursday and is part of ongoing reforms in the sugar sector aimed at resolving longstanding disputes over cane payments.
Sugarcane prices in Kenya are set using a formula that considers cane weight, net ex-factory sugar prices, and the farmer-sharing ratio.