Kenya: Kenya has formally exited the Common Market for Eastern and Southern Africa (COMESA) sugar safeguard regime after 24 years, marking a major milestone in the transformation of the country’s sugar industry.
According to Kenya News Agency, the safeguard, which lapsed on November 30, 2025, had fully achieved its objective as a temporary, reform-driven instrument designed to stabilize and restructure the sector. Kenya initially sought the safeguard at the launch of the COMESA Free Trade Area in 2001 under Article 61 of the COMESA Treaty, at a time when the sugar industry required structured protection to undertake far-reaching reforms.
In a press release issued on Sunday, Kenya Sugar Board (KSB) Chief Executive Officer Jude Chesire said the exit represents a decisive and confident transition for the sugar sector, emphasizing that it reflects strength rather than vulnerability. ‘Kenya’s sugar industry is stable, well-managed, and supported by clear policy direction. Farmers, millers, workers, and investors are assured that the exit from the safeguard does not expose the sector to disruption but rather signals readiness to compete within a structured and fair regional market,’ Chesire said.
Over the past several years, the Kenya Sugar Board, under the Ministry of Agriculture and Livestock Development, has deliberately shifted policy focus from protectionism to competitiveness. This shift has been anchored on value addition, operational efficiency, diversification, and long-term sustainability of the sector.
Globally, sugar is no longer treated solely as a single consumer commodity. In competitive markets, sugarcane is increasingly viewed as an industrial raw material, with refined table sugar becoming a secondary product. Value is derived from integrated processing, including the production of ethanol from molasses, electricity generation from bagasse supplied to national grids, paper and board manufacturing, industrial alcohols, and other downstream products.
These integrated practices significantly lower the effective cost of sugar production and explain why some exporting countries are able to supply sugar at comparatively lower prices. According to Chesire, Kenya has firmly embraced this model, with the Kenya Sugar Board playing a central role in supporting millers to diversify sugar by-products.
He said diversification has strengthened millers’ balance sheets, improved cash flows, and enabled timely and better payments to farmers. ‘This approach not only strengthens millers but also insulates farmers from the volatility associated with over-reliance on table sugar alone,’ he noted.
On supply fundamentals, the sugar subsector has recorded a strong recovery and growth over the past few years. Sugarcane acreage expanded by 19.4 percent, from 242,508 hectares to 289,631 hectares. This growth has been supported by favorable rainfall patterns, improved access to certified seed cane, and targeted fertilizer subsidy interventions.
As a result, sugar production increased by 76 percent, rising from 472,773 metric tonnes in 2022 to the current output of 815,454 metric tonnes. The increase reflects improved farm productivity, better agronomic practices, and enhanced factory efficiencies following rehabilitation and operational reforms.
Kenya’s national sugar demand currently stands at approximately 1.1 million metric tonnes annually. While domestic production has made significant gains, it remains slightly below total consumption. Chesire said production trends are increasingly aligned with national demand, supported by miller capacity expansion, factory rehabilitation, and newly leased mills that will require time to fully optimize operations.
Consequently, Kenya will continue to responsibly supplement local supply through imports sourced from both the COMESA region and other approved markets. Chesire said the government has adopted a balanced sourcing framework to ensure stability across the value chain.
‘This balanced sourcing framework is deliberate and necessary. Population growth continues to drive demand, while surplus availability within the COMESA region is not always predictable. Importation from both COMESA and non-COMESA origins will therefore be applied in a controlled and transparent manner to ensure price stability for consumers, market certainty for producers, and overall food security, without undermining local production,’ he said.
The CEO noted that although the sector remains sensitive to climatic conditions, these dynamics are factored into ongoing planning and market coordination measures by the Kenya Sugar Board. He explained that expected dry spells may temporarily reduce output, while periods of adequate rainfall are projected to significantly enhance production.
The medium-term outlook for the sector remains strong. As miller capacity expands and farm productivity continues to improve, Kenya is projected to meet domestic demand and attain self-sufficiency in sugar production. In the medium term, the country is expected to generate surplus production, positioning it competitively for regional exports within the COMESA market.
The sugar sector has undergone deep and irreversible structural reforms, including the transition of former state-owned sugar mills to long-term private leasing. This policy decision was aimed at restoring efficiency, professionalism, and accountability in mill operations.
The leasing framework was designed with a long-term horizon to allow millers adequate time to invest, stabilize operations, and realize returns, while benefiting from continued policy support, predictable market access, and structured trade arrangements.
Chesire emphasized that the exit from the safeguard does not negate government support but instead aligns with the reform trajectory already underway, reinforcing certainty in the operating environment. The Kenya Sugar Board continues to provide strong regulatory oversight, market coordination, and farmer protection to ensure an orderly, fair, and sustainable industry.
Over the 24-year period and eight safeguard extensions, the regime was governed by strict benchmarks set by the COMESA Council of Ministers. These included tariff-rate quotas, productivity investments, sector restructuring, infrastructure development, and continuous performance monitoring. All obligations under the safeguard have now been fully met.
The conclusion of the safeguard therefore, marks the successful completion of a reform cycle, not its abandonment. Chesire noted that Kenya now enters a new phase defined by competitiveness, value addition, regional integration, and sustainable growth, supported by a clear policy framework and a restructured, private-sector-led industry.
The government, he added, remains fully committed to safeguarding farmer livelihoods, supporting miller viability, and ensuring food security, price stability, and long-term growth of the sugar sector within the COMESA Free Trade Area.
