Cane imports to Kenya grew last year as demand for sugar continued to grow in the country despite the low local supply of raw materials, an analysis of the country's Sugar Directorate data shows. The increase in the amount of cane coming into the country comes after a drop in imports-- during which Kenya had allowed limitless importation of finished sugar.
Sugarcane farming in Kenya has over the last decade become an unattractive venture owing to the low returns and the country’s reliance on cheap sugar imports.
The 2019 economic survey published by the Kenya National Bureau of Statics (KNBS) indicates that the price had gone down by about 5 percent to Sh3,816 ($3) per tonne.
“The decline was partly attributable to stiff competition from cheap sugar imports accumulated from 2017,” said the survey.
The Kenyan government leased five state-owned mills to private investors to revive local sugar production and sugarcane farming.
The mills are, however, struggling under the weight on bad debt, low supply of raw materials as farmers stay away from the loss-making venture and high cost of production.
The deficit is currently filled by cheap and illegal import of brown sugar.
Less than half of the about a million metric tonnes of sugar consumed in Kenya was locally produced.
The country imports sources from Uganda, Mauritius, Egypt India and Saudi Arabia.
The United Nations Food and Agriculture Organisation (FAO) estimates that agriculture’s direct contribution to Kenya’s GDP is about 26 percent, and another 27 percent indirect contribution through linkages with other sectors.
The green economy contributes about 65 percent to Kenya’s total export earnings and employs about 40 percent of the population.
