Kenya's sugar industry is undergoing significant changes with the establishment of the Kenya Sugar Board (KSB) and the Kenya Sugar Research and Training Institute (KSR&TI), replacing the Agriculture and Food Authority (AFA) as the regulatory body. The KSB will oversee industry management, while the KSR&TI will focus on research, tasks previously handled by the AFA and the Kenya Agricultural and Livestock Research Organization (KARLO). Agriculture CS Andrew Karanja has appointed acting CEOs for both entities, and employees from the former Kenya Sugar Board and AFA’s Sugar Directorate will transition to the new Board, which will also include representatives from sugar growers and mills.
This restructuring comes amidst challenges for Kenya in the regional sugar market. Data from the Uganda Revenue Authority (URA) shows that Rwanda has overtaken Kenya as the largest importer of Ugandan sugar within the East African Community (EAC). Between January and September 2024, Rwanda accounted for 35.3% of Uganda's sugar exports, receiving 39.3 metric tonnes out of 111.1 MT. Uganda's exports to Kenya have ceased since July 2024, further highlighting Kenya's diminished role in regional trade.
Rwanda's increased sugar imports from Uganda have stabilized domestic sugar prices, which peaked at US$1.47 per kilogram in June 2024 but dropped to between US$0.88 and US$0.95 per kilogram by October. This shift underscores the growing competitiveness of Rwanda in the regional sugar trade and the challenges Kenya faces in reclaiming its market position within the EAC.
