Kenya Launches Bonus Programme to Boost Sugar Cane Cultivation

January 21, 2025

(2 Minutes Read)

President William Ruto has announced a Ksh150 million bonus for sugar farmers who supplied cane to the Mumias Sugar Factory in Kakamega, marking the first payment of its kind in the industry. He stated that this landmark bonus not only confirms the success of reforms in the sugar sector but also highlights the potential to improve farmers’ lives and support tens of thousands of households.

With a record 832,000 tonnes of sugar produced last year, Kenya is on course to attain surplus production and commence regional exports by 2026, turning sugarcane cultivation into a viable and rewarding venture, said the President. Speaking during the launch of the bonus payments, President Ruto pointed out that the reforms carried out in the sugar industry have yielded significant results.

The President pointed out that the writing off of Ksh117 billion in debts, including the payment of Ksh1.7 billion in farmers’ arrears and Ksh650 million owed to employees, was part of the effort to revive the sector. In line with other measures outlined in the 2019 Sugar Taskforce, President Ruto said he had assented to the Sugar Act 2024 that establishes sugarcane catchment areas to better manage supply, synchronise milling operations and improve efficiency.

The President said the government is also distributing subsidised fertiliser to enhance productivity and increase farmers’ income. Last year, Kenya produced a record 832,000 metric tonnes of sugar, and anticipate that production will continue growing. By 2026, Kenya should be a surplus producer of sugar and begin exporting to the regional market, said President Ruto. The bonus payment would have a substantial impact on the growth of the sugar sector, which is a key target for Kenya’s export plans. To support this, 50 per cent of the annual rent paid to the bank will be distributed as a bonus to farmers on a pro-rata basis, depending on the quantity of sugarcane each farmer supplies to the miller, President Ruto explained. This will ensure fairness and transparency and will be adjusted appropriately based on the company’s performance.

The model can be replicated in other publicly-owned sugar companies once they are leased, and the board will conduct a comprehensive study to develop a robust system of giving incentives to farmers. Additionally, Cane Testing Units will be utilised to ensure farmers receive additional payments based on the quality of their cane along with the payments based on weight.