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Kenya’s Sugar Sector Gains Amid Regional Trade Dynamics with Uganda

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Kenya’s Sugar Sector Gains Amid Regional Trade Dynamics with Uganda
President William Ruto tries his hands in cane cutting

Speaking during an event in Mumias, Kakamega County, President William Ruto attributed this achievement to reforms aimed at revitalising the industry.

Kenya’s sugar industry is celebrating a major milestone with the issuance of bonuses to Mumias Sugar Company farmers—a first in the sector’s history.

Speaking during an event in Mumias, Kakamega County, President William Ruto attributed this achievement to reforms aimed at revitalising the industry.

The bonuses promise improved incomes for farmers, advancing the government’s agenda to enhance livelihoods and drive economic growth.

President Ruto hailed the sector’s performance, highlighting Kenya’s record-breaking production of 832,000 tonnes of sugar last year.

This remarkable output positions Kenya to meet domestic demand and achieve a production surplus by 2026, setting the stage for regional exports.

Such growth could transform sugarcane farming into a lucrative venture, positively impacting thousands of households.

However, Kenya’s ambitions for surplus production and regional trade are set against a backdrop of historical tensions with Uganda, another key sugar producer in the East African region.

Uganda has long sought to export its surplus sugar to Kenya, but restrictive trade policies and quotas have strained relations between the two nations.

Ugandan producers have criticised these measures, arguing they contradict the East African Community (EAC) goals of economic integration and open trade.

Kenya, meanwhile, has defended its policies, citing the need to protect local farmers and ensure the competitiveness of its domestic sugar industry.

President Ruto’s optimism about Kenya’s potential as a key regional player now raises critical questions about how the two countries can coexist in this evolving market.

To foster mutual benefits, Kenya and Uganda could explore collaborative trade frameworks.

Kenya’s journey toward surplus production and Uganda’s consistent output present an opportunity for complementarity rather than competition.

By leveraging each country’s strengths, the two nations could address regional demand while reducing trade tensions. A cooperative approach would also strengthen the EAC’s collective market presence.

As Kenya implements further reforms, the transformation of its sugar sector has the potential to redefine the country’s role within the regional economy.

However, sustained dialogue and alignment of policies with Uganda will be essential to maximise mutual benefits and uphold the spirit of regional integration.

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