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Kenya has officially withdrawn from the COMESA Sugar Safeguard regime after 24 years, a move the government says signals progress in reforms aimed at strengthening and stabilising the sugar industry.
The safeguard, which expired on November 30, 2025, was introduced as a temporary trade protection measure to allow the sector time to restructure and improve its competitiveness within the regional market. Authorities say its conclusion reflects confidence that the industry is now better organised and supported by clearer policies.
The government has assured farmers, millers, workers and investors that the transition will not disrupt the sector but instead demonstrates greater readiness to compete within the COMESA Free Trade Area.
According to the Kenya Sugar Board (KSB), the safeguard achieved its reform objectives over its 24-year lifespan, during which it was renewed eight times. Kenya met conditions set by the COMESA Council of Ministers, including the use of tariff-rate quotas, investments to boost productivity, infrastructure improvements and continuous performance monitoring.
“The end of the safeguard marks the close of a reform phase,” the Board said, noting that the industry is now shifting towards competitiveness, value addition, regional integration and sustainability.
Policy focus in recent years has moved away from trade protection towards efficiency, diversification and value addition. The Ministry of Agriculture, through the KSB, has encouraged millers to reduce dependence on table sugar by adopting integrated industrial processing models.
Globally, sugarcane is increasingly viewed as an industrial input rather than a single-product crop. Beyond refined sugar, value is derived from products such as ethanol from molasses, electricity generated from bagasse, paper and board, and industrial alcohols. Experts say such diversification lowers production costs and explains the pricing advantage enjoyed by some sugar-exporting countries.
The KSB says similar diversification initiatives are being promoted locally, with millers encouraged to expand by-product processing to strengthen cash flows and improve farmer payments.
On the production front, the sector has recorded significant growth. Sugarcane acreage rose by 19.4 per cent from 242,508 hectares to 289,631 hectares, driven by favourable weather, improved access to certified seed cane and fertiliser subsidy programmes. National sugar output increased from 472,773 metric tonnes in 2022 to 815,454 metric tonnes, according to official figures.
Kenya’s annual sugar demand stands at about 1.1 million metric tonnes. While higher local production has reduced the supply gap, authorities say expanding capacity, rehabilitating factories and optimising newly leased mills will take time.
In the meantime, the government plans to continue supplementing domestic output with controlled sugar imports from the COMESA region and other approved sources. Officials say this strategy is aimed at maintaining stable consumer prices, ensuring producer certainty and safeguarding national food security amid growing demand and fluctuating regional surpluses.
The sector remains susceptible to weather patterns, with droughts posing risks to output and favourable rainfall expected to boost production. These variables are factored into ongoing planning and market coordination, according to the KSB.
Looking ahead, the government says the medium-term outlook for the industry is positive, citing anticipated gains in farm productivity and increased milling capacity. Leasing of former state-owned sugar mills to private operators remains a key reform measure intended to enhance efficiency, accountability and long-term investment.
Officials have stressed that exiting the safeguard does not mean reduced government support. Regulatory oversight, market coordination and farmer protection will continue under the Kenya Sugar Board.
Kenya first sought the Sugar Safeguard in 2001 under Article 61 of the COMESA Treaty, when the sector required structured protection to implement reforms. With the safeguard now ended, the government says it remains committed to supporting farmers, sustaining millers and ensuring food security within the COMESA Free Trade Area.
