Kenya’s formal exit from the Common Market for Eastern and Southern Africa Sugar Safeguard regime after 24 years signals a turning point for the country’s sugar industry, with implications for farmers’ earnings and the price of sugar in local markets.
In a statement issued on Saturday, Kenya Sugar Board Chief Executive Officer Jude Chesire said the safeguard, which lapsed on November 30, 2025, had achieved its purpose of stabilising and restructuring the sector and that Kenya was now ready to compete regionally.
“The Government of Kenya has formally exited the COMESA Sugar Safeguard regime after 24 years, marking a decisive and confident transition for the country’s sugar industry,” Chesire said, adding that the move “reflects strength, not vulnerability”.
For farmers, the policy shift comes against the backdrop of a sharp recovery in production. Sugarcane acreage has expanded by 19.4%, from 242,508 hectares to 289,631 hectares, while sugar output has risen by 76%, from 472,773 metric tonnes in 2022 to 815,454 metric tonnes currently. Chesire attributed the gains to favourable rainfall, improved access to certified seed cane and fertiliser subsidy programmes.
He said reforms, including the long term private leasing of former state owned mills, were improving efficiency and cash flows, enabling millers to pay farmers more reliably. The Board is also pushing value addition, with sugarcane increasingly treated as an industrial raw material for products such as ethanol, electricity from bagasse and industrial alcohols, a shift expected to strengthen farmer incomes over time.
On prices, Chesire said consumers should expect relative stability rather than sudden spikes. While national demand stands at about 1.1 million metric tonnes annually, domestic production is increasingly aligned with consumption, although Kenya will continue to import sugar to bridge short-term gaps.
“Kenya will continue to responsibly supplement local supply through imports from both the COMESA region and other approved sources,” he said, describing imports as “deliberate and necessary” to ensure price stability, food security and market certainty without undermining local production.
He cautioned that climate variability remains a risk, with dry spells capable of temporarily reducing output. However, the medium term outlook is positive, with Kenya projected to meet and eventually surpass domestic demand, paving the way for surplus production and regional exports.
Kenya first sought the safeguard in 2001 under Article 61 of the COMESA Treaty. After 24 years and eight extensions, Chesire said all reform benchmarks set by the COMESA Council of Ministers had been met.
“The conclusion of the safeguard therefore marks the successful completion of a reform cycle, not its abandonment,” he said, stressing that government support for the sector would continue even as Kenya competes in a more open regional market.