Kenya's sugar imports more than doubled in January 2025 compared to December last year, driven by huge orders of the industrial variant of the sweetener used for the manufacture of soft drinks, chewing gum, and confectioneries among others.
Fresh data by the Kenya Sugar Board (KSB) shows that total sugar imports increased significantly to 32,517 tonnes, up from 14,163 tonnes in December 2024---marking a 129.59 percent jump.
The imports included 10,380 tonnes of mill white or brown sugar and 22,138 tonnes of white refined sugar which Kenya does not produce.
Kenya wholly imports its requirement of white refined sugar also known as industrial sugar under the East Africa Community (EAC) -wide duty remission scheme which imposes a 10 percent duty on such shipments.
Sugar imports under the EAC remission scheme are tightly regulated with those seeking permits being subject to stringent measures.
For example, as a precondition, every Kenyan manufacturer seeking support through the scheme must be registered and maintain their registration as a manufacturer with the Sugar Directorate.
Also, every manufacturer, other than where that manufacturer only imports sugar from a Common Market for Eastern Africa (Comesa) member State, must be gazetted under the EAC Customs Management Duty Remission Scheme.
In cases where the refined sugar originates from outside of Comesa, the importer is required to apply to The National Treasury for authority for every separate shipment of refined sugar. The application shall declare the origin, volume, quality, and price.
Only last month, seven Kenyan firms were cleared to import a total of 20,800 tonnes of industrial sugar under the special EAC tax for the manufacture of various industrial products including soft drinks, chewing gum, and tomato sauce.
KSB said that the January sugar imports helped to stabilise stock levels in the domestic market local supply despite higher international market prices, with the cost of insurance and freight values reaching Sh89,394 per tonne for white refined sugar and Sh100,000 per tonne for mill white or brown sugar.
The KSB data further shows that sugar production increased by 22 percent to 73,019 tonnes in January, up from 59,857 tonnes in December 2024.
“January 2025 saw a strong recovery in sugarcane milling and production, reflecting improved supply,” noted part of the KSB report. Similarly, bagged sugar production increased by 28 percent to 73,201 tonnes, up from 57,152 tonnes. Sugar sales also grew by nine percent, reaching 74,000 tonnes in January, compared to 67,598 tonnes in December.
Meanwhile, local sugar marker saw continued upward pressure prices as ex-factory prices increased by five percent, rising to Sh6,569 per 50kilogramme(kg) bag from Sh6,233 in December.
Wholesale prices rose 9 percent to Sh7,177 per 50kg bag while retail prices climbed to an average of Sh157 per kilo, up from Sh149 per kilo the previous month.
