West Kenya Sugar invests Sh1 billion in cane development

West Kenya Sugar Company has announced an investment of Sh1 billion in cane development.

Between April and October, the company sourced 124,840 tonnes of seed cane and supplied it to 15,243 farmers across Western Kenya, parts of the Rift Valley, and Siaya County.

The miller has so far distributed 6,154 tonnes of improved, high-yielding and early-maturing seed cane varieties to 548 farmers, resulting in an additional 617 acres of cane development.

A total of 79 demonstration farms have been set up in Busia, Kakamega, Bungoma, and Nandi counties to serve as a seed-cane bank.

According to West Kenya Sugar’s Business Controller, David Okoth, for the industry to survive, millers must carry out massive cane development.

“Every year we set cane development targets and strive to achieve them because we understand that for our sugar industry to thrive, we must develop enough cane to sustain milling operations,” said Mr Okoth.

Okoth expressed concerns that while West Kenya is investing heavily in cane development, some competitors remain inactive in that area, a situation he said undermines the sector’s stability.

“Lack of robust cane development plans by all millers directly hurts the industry and the Kenyan economy at large,” he added.

Mr Okoth further urged the industry regulator, the Kenya Sugar Board (KSB), to verify cane development data for each miller. Doing so, he said, would reveal which miller has developed sugarcane to sustain the industry.

“If all millers developed sugarcane in line with their milling capacities, no factory would be forced to close due to cane shortages. Unfortunately, while we invest in cane development, others don’t and end up stealing our contracted cane to sustain their operations,” Okoth lamented.

Between 2022 and July 2025, West Kenya Sugar estimates losses of Sh246 million due to cane poaching, which are funds originally invested in farmers through its development programmes.

This year alone, the company has spent Sh945,310,353 across its three operating units, Kabras Sugar (Kakamega), Naitiri Sugar (Bungoma), and Olepito Sugar (Busia), to develop 29,623 acres of new cane through land preparation, seed cane supply, and fertiliser distribution.

“This remains the most sustainable strategy to end the persistent cane shortages that periodically force factory closures and disrupt livelihoods,” said Mr. Okoth. “With continued investment, West Kenya can sustain its milling capacity throughout the year,” he said.

In terms of acreage developed, Kabras Sugar leads with 14,963 acres, followed by Naitiri Sugar (12,749 acres) and Olepito Sugar (1,911 acres).

The company had set an ambitious target of 37,000 acres for 2025. So far, 29,623 acres have been realised, with the balance expected to be achieved before year-end, supported by the ongoing short rains.

West Kenya has, between May and September, distributed 39,022 bags of fertiliser to contracted outgrowers to enhance yields and improve returns.

The shortage of mature cane, which has become a recurring cause of factory shutdowns, was among the key issues raised during the Senate Agriculture Committee’s visit to Olepito Sugar Factory on October 9, 2025, led by the Committee’s Vice Chairperson, Senator Alexander Mundigi.

In a 12-point memorandum, Olepito Sugar urged the Senate to empower the Sugar Board with stronger enforcement mechanisms against errant millers whose unethical practices threaten the sector’s survival.

Olepito Sugar’s General Manager, Gerald Okoth, appealed for a mandatory joint annual cane census, supervised by the regulator, with a view to ensuring that results on cane availability are credible and transparent.

Some millers complained that leaving factories to be surveyed by themselves leads to the manipulation of figures, which affects the industry.

“We are pleading with the Senate to institute a mechanism under which an annual joint cane census under KSB supervision can be carried out to ensure accurate data on what each miller has developed and contracted,” said Okoth.

He added, “It must also be mandatory for all millers to submit annual cane development plans financed through the Sugar Development Levy. Idle public land should be allocated to millers to expand cane development and curb poaching.”

Rai Group’s Head of External Affairs, George Muruli, warned that unless strict penalties are introduced for harvesting immature cane, the industry will continue suffering cyclical shortages.

“We have reported cases where a certain miller harvests cane as young as nine months. This practice is killing both the farmer and the industry. Eventually, farmers will uproot cane due to poor returns, and that will spell doom for the sector,” he said.

The current closure of sugar factories marks the third in two years since the resumption of milling at Mumias Sugar in 2022. The first suspension occurred in 2023, the second in December 2024, and the current one affects both Upper and Lower Western Kenya.

Industry observers have accused some millers, notably Mumias Sugar, of poaching cane developed by others, causing raw material shortages and factory closures.

Stakeholders now agree that only sustained cane development, strict policy enforcement, and coordinated industry planning will restore stability and secure a sustainable future for Kenya’s sugar industry.