Kenya has officially launched an ambitious strategic plan to transform its traditional sugarcane industry into a diversified bioeconomy and renewable energy hub—marking a decisive shift from single-product sugar manufacturing toward a broader, integrated agro-industrial model.
A Historic Announcement in Nairobi
The plan was unveiled by Jude Chesire, Director General of the Kenya Sugar Board, during the Informa Africa Sugar Conference held in Nairobi on April 14–15. As the largest annual gathering on the continent dedicated to the sugar and ethanol sectors, the conference brought together industry leaders, policymakers, and investors from across Africa, Asia, and Europe at a Nairobi hotel.
In his keynote address titled “Sweetening the Future,” Chesire called on the sugar industry to redefine its role within the national economy. He emphasized that the sector must move “beyond sugar” and embrace a broader agro-industrial model built on sustainability and innovation.
“We are rethinking the future through the lens of the bioeconomy,” Chesire said, noting that the industry’s long-term viability will depend on diversification and efficient use of resources.
Notably, Chesire was elected in November 2025 to serve as the 2026 Chairman of the International Sugar Organization (ISO)—marking the first time Kenya, and indeed Africa as a whole, will lead the London-based global sugar governance body. It is widely seen as a historic breakthrough for the continent.
Three Pillars of Transformation
The transformation strategy rests on three core pillars:
- Ethanol expansion: Sugar mills will scale up ethanol production using molasses, a byproduct of sugar refining.
- Cogeneration power: Companies will generate electricity from bagasse—the fibrous residue left after crushing sugarcane—through combined heat and power (CHP) systems.
- Zero-waste industrialization: Operators will drive industrial utilization of byproducts across the value chain, targeting zero waste throughout the production process.
This strategy is expected to stabilize mill revenues, reduce operating costs, and create new income streams for farmers and investors. It also positions the sector to play a pivotal role in Kenya’s overall energy mix, supporting national renewable energy targets and reducing dependence on fossil fuels.
Bioethanol production additionally offers a strategic alternative to fossil fuels in road transportation. Across Africa, countries such as Nigeria and Uganda have already established regulatory frameworks supporting ethanol blending with transport fuels.
A Lifeline for Millions
Chesire emphasized that Kenya’s sugar industry supports the livelihoods of more than 8 million people, making its revitalization a national priority. The reforms aim not only to strengthen economic resilience but also to integrate the sector more deeply into Kenya’s manufacturing and energy ecosystems.
To ensure a smooth transition, the Kenya Sugar Board is spearheading modernization initiatives focused on productivity and sustainability, including the adoption of high-yielding cane varieties, mechanization of farming operations, and the application of precision agriculture technologies.
Tangible Progress Already Underway
Kenya’s sugar sector reforms have already delivered significant results:
- Four state-owned mills—Sony, Muhoroni, Chemelil, and Nzoia—have been leased to private operators, unlocking long-stalled efficiency gains and investment potential.
- More than 47,000 hectares of new sugarcane acreage has been added.
- Sugar production has surged 76%, reversing nearly two decades of decline.
- The cane purchase price has been raised from KSh 4,350 to KSh 5,750 per tonne.
- The industry now provides 250,000 direct jobs and supports the livelihoods of nearly 6 million people.
According to the Kenya National Bureau of Statistics, the country has approximately 300,000 hectares under sugarcane cultivation, with average annual sugar production of around 677,800 tonnes between 2020 and 2024.
The 2027 Goal
With these reforms in motion, Kenya is firmly on track toward its central objective: achieving full sugar self-sufficiency by 2027.
