Agriculture Cabinet Secretary Mwangi Kiunjuri confirmed the National Treasury has allocated Sh2.7 billion to resolve outstanding payments to western Kenya sugarcane farmers, following prolonged delays linked to the collapse of state-owned sugar mills.
The disbursement fulfills a long-standing commitment to compensate growers for cane delivered to struggling mills, though some farmers had waited over a decade for resolution. Kiunjuri emphasized the need for systemic reforms to address chronic industry challenges, including mismanagement and outdated infrastructure.
A government task force is gathering input from stakeholders on revitalizing the sector, but progress has been hindered by security concerns during public consultations. Parallel private initiatives have emerged, sparking debate over the best path forward.
Key obstacles include the planned privatization of state mills, which requires significant investment to modernize facilities. Industry experts note Kenya's high production costs—exacerbated by regional competition and import regulations—make sustainability difficult without structural changes.
With payments now secured, farmers can focus on long-term solutions such as private investment and research into disease-resistant sugarcane varieties. However, analysts caution that temporary financial support alone cannot replace fundamental economic reforms to make cane cultivation viable.
