Kenya’s sugar production has increased by approximately 22 per cent over the past year following ongoing Government reforms.
As a result, the country now moves to harness the sector’s vast potential in electricity generation and ethanol production to strengthen energy security and reduce dependence on imported petroleum products.
Cabinet Secretary for Agriculture and Livestock Development Mutahi Kagwe said the reforms, which include the leasing of state-owned sugar factories and enhanced support to farmers are beginning to deliver measurable results.
Kagwe added that the government is now shifting focus towards maximizing the full economic value of sugarcane through electricity cogeneration and industrial ethanol production.
Speaking during a visit to West Valley Sugar Company in Kericho County, Kagwe said the factory alone has the capacity to generate up to 15 megawatts of electricity, nearly three times its current production, by fully utilizing bagasse, the fibrous residue left after sugarcane is crushed.
“West Valley is currently generating five megawatts of electricity while utilizing only about 30 per cent of its available bagasse. If the entire resource is exploited, the factory has the potential to produce up to 15 megawatts, demonstrating the enormous opportunity that exists within Kenya’s sugar industry,” said Kagwe.
The CS said the government was fast-tracking mechanisms that will enable sugar factories to sell surplus electricity to the national grid, describing cogeneration as a critical revenue stream that will improve the financial sustainability of sugar mills while enhancing farmers’ earnings.
“We want sugar factories to become major producers of renewable energy. The sale of surplus electricity to the national grid will not only strengthen the profitability of millers but will also contribute significantly to Kenya’s clean energy agenda,” he said.
Kagwe further disclosed that the Government is supporting increased ethanol production as part of efforts to lower the country’s fuel import bill and reduce exposure to fluctuations in global oil prices.
He noted that West Valley Sugar Company currently produces approximately 20,000 litres of ethanol every day, describing the investment as an illustration of the direction the Government intends to steer the sugar industry.
“If we blend locally produced ethanol with fuel, we shall reduce our dependence on imported petroleum products, conserve foreign exchange and create additional markets for our sugarcane farmers. Going the ethanol way is what this Government will support,” the Cabinet Secretary stated.
He said the future competitiveness of Kenya’s sugar industry will depend on full utilization of every component of sugarcane, explaining that factories should no longer focus solely on sugar production but diversify into electricity generation, ethanol manufacturing and other value-added products.
“The future of the sugar industry lies in maximizing every part of the sugarcane. Beyond sugar, the crop can generate electricity, ethanol and several industrial products that would create more jobs and increase incomes across the value chain,” Kagwe observed.
The CS also assured workers formerly employed by financially distressed public sugar factories that the Government remains committed to settling outstanding salary arrears inherited from the collapsed institutions as part of ongoing sector reforms.
At the same time, Kagwe challenged local investors to take advantage of emerging opportunities in sugar manufacturing, renewable energy generation and ethanol production, saying Kenyan entrepreneurs should play a leading role in driving industrial growth within the sector.
“We have demonstrated that sugar is no longer just about food production. It is becoming a strategic industry capable of producing clean energy, industrial fuel and thousands of employment opportunities. We encourage more Kenyans to invest in this transformation,” he said.
He at the same time clarified that elections of farmer representatives to the Kenya Sugar Board are provided for under the law and must be conducted by farmers themselves, adding that proposals to strengthen the electoral framework are under consideration.
He commended the Kipchimchim Group for investing in integrated sugar processing, noting that the company has become a leading example of value addition through sugar manufacturing, electricity generation, ethanol production, retail business and logistics.
The group currently employs more than 7,000 people across its various enterprises, making it one of the country’s largest indigenous employers in the sugar value chain.
Among those present during the visit were Kipchimchim Group Chairman Alfred Soi, Managing Director Bernard Soi, K-Matt Supermarket Chief Executive Officer Brian Soi and Kenya Sugar Board official Samuel Lagat.
by Gilbert Mutai
