NAIROBI, Kenya, Jan 4 — Kenya has formally exited the COMESA Sugar Safeguard regime after 24 years, marking a major turning point for the country’s sugar industry and signalling confidence in its ability to compete within the regional market.
In a statement issued on Sunday, the Kenya Sugar Board (KSB) confirmed that the safeguard, which lapsed on November 30, 2025, had fully served its purpose as a temporary, reform-driven instrument aimed at stabilising and restructuring the sector.
“This transition reflects strength, not vulnerability,” the Board said.
“Kenya’s sugar industry is stable, well-managed and supported by clear policy direction.”
Kenya first sought protection under the COMESA Sugar Safeguard in 2001 at the launch of the COMESA Free Trade Area, citing the need to shield a fragile industry while undertaking far-reaching reforms.
Over the past 24 years, the safeguard was extended eight times and subjected to strict performance benchmarks set by the COMESA Council of Ministers, including productivity improvements, factory rehabilitation, infrastructure investment and continuous monitoring.
According to KSB, all these obligations have now been fully met.
The Board noted that policy focus in recent years has deliberately shifted from protectionism to competitiveness, anchored on value addition, efficiency and diversification.
Globally, sugarcane is increasingly treated as an industrial raw material rather than a single commodity, with value derived from ethanol production, electricity generation from bagasse, paper and board manufacturing, industrial alcohols and other downstream products.
“These practices significantly lower the effective cost of sugar production and explain why some exporting countries are able to supply sugar at comparatively lower prices,” the statement said.
Kenya, the Board added, is firmly on this path.
Diversification
Millers have been supported to diversify sugar by-products, strengthening their balance sheets, stabilising cash flows and improving payments to farmers, while insulating growers from volatility associated with over-reliance on table sugar.
The Board disclosed that the sugar subsector has recorded a strong recovery in recent years.
Sugarcane acreage expanded by 19.4 per cent, from 242,508 hectares to 289,631 hectares, driven by favourable rainfall, improved access to certified seed cane and targeted fertiliser subsidy interventions.
As a result, sugar production rose by 76 per cent, from 472,773 metric tonnes in 2022 to 815,454 metric tonnes, reflecting improved farm productivity and factory efficiencies.
Current national sugar demand stands at about 1.1 million metric tonnes annually.
While domestic production has made significant gains, the Board acknowledged that miller capacity expansion, factory rehabilitation and newly leased mills will take time to fully optimise operations.
Consequently, KSB said Kenya will continue to supplement local supply through controlled imports from both the COMESA region and other approved sources to ensure price stability, food security and market certainty without undermining local production.
Irreversible reforms
The Board said the sector has undergone “deep and irreversible structural reforms,” including the transition of former state-owned mills to long-term private leasing — a move aimed at restoring efficiency, professionalism and accountability.
“The exit from the safeguard does not negate this support. On the contrary, it aligns with the reform trajectory already underway and reinforces certainty in the operating environment,” KSB said, adding that regulatory oversight, market coordination and farmer protection will continue under the Ministry of Agriculture and Livestock Development.
Looking ahead, the Board projected a strong medium-term outlook, with Kenya expected to meet — and eventually surpass — domestic demand as farm productivity improves and miller capacity expands, positioning the country for surplus production and regional exports.
“The conclusion of the safeguard therefore marks the successful completion of a reform cycle, not its abandonment,” said Jude Chesire, Chief Executive Officer of the Kenya Sugar Board.
“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 reaffirmed its commitment to safeguarding farmer livelihoods, supporting miller viability, and ensuring long-term growth, price stability and food security in the sugar sector.
