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Rai-owned Sugar Firm Extends Local Production Market Share Lead

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Nyakundi Report

Newsroom 1 min read

This archive report was first published on 2 October 2019.

On October 2, 2019, West Kenya Sugar Company, a leading sugar producer in Kenya, announced that it had extended its market share lead in the industry.

According to data from the Sugar Directorate, the company, owned by businessman Jaswant Singh Rai, now commands 29.3 percent of the output, up from 25 percent in the first half of 2018.

The firm, which produces the Kabras Sugar brand, saw its production rise to 88,531 tonnes between January and February 2019, compared to 74,281 tonnes in the corresponding period last year.

West Kenya Sugar Company has widened the gap further from Sukari Factory, which came in second with 46,843 tonnes, and Butali Sugar, which managed 43,589 tonnes, making it the third biggest producer.

Private millers led the pack, with former leader Mumias Sugar Company remaining shut for a year due to ageing equipment and raw material shortages.

State-owned Nzoia Sugar Company emerged as the best among the five government millers, with production of 12,582 tonnes, followed by South Nyanza Sugar Company (Sony) at 10,086 tonnes, Muhoroni at 8,020 tonnes, and Chemelil at 2,863 tonnes.

The government is looking to sell Sony, Chemelil, Nzoia, Muhoroni, and Miwani milling companies to strategic investors to allow for the injection of new capital and stem their losses.

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