Kenya has formally exited the Common Market for Eastern and Southern Africa (COMESA) Sugar Safeguard regime, ending a 24-year period of protective measures and marking a significant policy milestone for the country’s sugar industry.
In a statement released on Saturday, Kenya Sugar Board (KSB) CEO Jude Chesire said the safeguard, which lapsed on November 30, 2025, had achieved its intended purpose, and Kenya is now positioned to compete effectively within the regional market.
“The Government of Kenya has formally exited the COMESA Sugar Safeguard regime after 24 years, marking a decisive and confident transition for the country’s sugar industry,” Chesire said.
“The safeguard had fully achieved its objective as a temporary, reform-driven instrument to stabilize and restructure the sector.”
From Protection to Competitiveness
Chesire emphasized that the exit should not be seen as a risk to the industry. Rather, it reflects a strengthened and well-managed sector supported by clear policy direction.
“This transition reflects strength, not vulnerability. Kenya’s sugar industry is stable, well-managed, and supported by clear policy direction. The move signals readiness to compete within a structured and fair regional market.”
The focus of policy is shifting from protection to competitiveness, with increased emphasis on value addition, efficiency, and diversification. Sugarcane is increasingly viewed as an industrial raw material, with potential for value in products such as ethanol, electricity from bagasse, paper, board, and industrial alcohols.
KSB is already supporting millers to diversify by-products, strengthening cash flows and improving farmer payments.
Strong Recovery in Production
Kenya’s sugar subsector has recorded notable recovery, with sugarcane acreage expanding by 19.4%, from 242,508 hectares to 289,631 hectares. Sugar production also increased 76%, from 472,773 metric tonnes in 2022 to 815,454 metric tonnes, driven by favorable rainfall, improved access to certified seed cane, and fertiliser subsidy interventions.
While national demand stands at approximately 1.1 million metric tonnes annually, domestic production is increasingly aligned with consumption. However, Chesire noted that capacity expansion, factory rehabilitation, and newly leased mills will take time to reach full potential, making continued imports necessary.
“Kenya will continue to responsibly supplement local supply through imports from both the COMESA region and other approved sources. This approach ensures price stability, food security, and market certainty without undermining local production.”
He also cited climate variability as a factor affecting output, with dry spells temporarily reducing production while good rainfall boosts yields. Despite these challenges, the medium-term outlook remains strong, with Kenya expected to meet and eventually surpass domestic demand, positioning itself for surplus production and regional exports.
Structural Reforms and Government Support
The sector has undergone deep and irreversible structural reforms, including the long-term private leasing of former state-owned sugar mills to enhance efficiency, professionalism, and accountability. Chesire stressed that exiting the safeguard does not mean the withdrawal of government support.
“The exit from the safeguard aligns with the reform trajectory already underway and reinforces certainty in the operating environment,” he said.
Kenya first introduced the Sugar Safeguard in 2001 under Article 61 of the COMESA Treaty, seeking time to implement structural reforms. Over 24 years and eight extensions, the safeguard was governed by strict benchmarks set by the COMESA Council of Ministers all of which have now been met.
“The conclusion of the safeguard marks the successful completion of a reform cycle, not its abandonment,” Chesire noted.
Kenya’s exit from the COMESA Sugar Safeguard is being hailed as a major policy milestone, signaling a confident shift towards a competitive, diversified, and sustainable sugar industry in the region.
