The Kenya Sugar Board (KSB) has announced its exit from the COMESA Sugar Safeguard regime, bringing to an end a protection framework that has been in place for more than 20 years.
In a statement on Sunday, January 4, KSB said the expiry of the safeguard signals confidence in the sector’s stability, competitiveness, and readiness to operate within a liberalised regional market.
KSB CEO Jude Chesire said the country’s withdrawal from the safeguard was deliberate and grounded in the fact that the mechanism had achieved its intended purpose.
"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. The safeguard, which lapsed on 30th November 2025, had fully achieved its objective as a temporary, reform-driven instrument to stabilize and restructure the sector," he said.
Chesire noted that the exit should not be interpreted as exposing the sector to risk, but rather as evidence of renewed strength and preparedness.
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"This transition reflects strength, not vulnerability. Kenya's sugar industry is stable, well-managed, and supported by clear policy direction. Farmers, millers, workers, and investors are assured that the exit from the safeguard does not expose the sector to disruption, but rather signals readiness to compete within a structured and fair regional market," he added.
Chesire explained that government policy over recent years has shifted away from protectionism towards competitiveness, anchored on diversification and value addition across the sugar value chain.
"Over the past several years, the Kenya Sugar Board under the Ministry of Agriculture and Livestock Development has deliberately shifted policy focus from protection to competitiveness anchored on value addition, efficiency, and diversification. Globally, sugar is no longer treated as a single commodity. In competitive markets, sugarcane is primarily an industrial raw material, with refined sugar increasingly becoming a secondary product.
"Value is realized through integrated processing of ethanol from molasses, electricity generation from bagasse supplied to national grids, 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," he further said.
Chesire said Kenya has already begun implementing this model, with diversification playing a central role in stabilising the sector and protecting farmers.
"Kenya is firmly on this path. The Kenya Sugar Board has been at the forefront of supporting millers to diversify sugar by-products, ensuring stronger balance sheets, stable cash flows, and improved farmer payments. This approach not only strengthens millers but also insulates farmers from volatility associated with over-reliance on table sugar alone," he noted.
On production, Chesire noted that the subsector has recorded significant recovery, driven by expanded acreage and improved productivity.
"On supply fundamentals, Kenya's sugar subsector has recorded strong recovery and growth. Sugarcane acreage expanded by 19.4 per cent, from 242,508 hectares to 289,631 hectares, supported by favourable rainfall patterns, improved access to certified seed cane, and targeted fertiliser subsidy interventions. As a result, sugar production increased by 76 per cent, from 472,773 metric tonnes in 2022 to 815,454 metric tonnes now, reflecting improved farm productivity and factory efficiencies," he stated.
Looking ahead, Chesire expressed confidence that Kenya will achieve self-sufficiency and emerge as a regional exporter.
"The medium-term outlook for the sector remains strong. As miller capacity expands and farm productivity continues to improve, Kenya is projected to not only meet domestic demand but to attain and surpass self-sufficiency in the medium term, positioning the country for surplus production and regional export competitiveness," he said.
Chesire said structural reforms, including the leasing of former state-owned mills, have fundamentally reshaped the industry.
"The sugar sector has undergone deep and irreversible structural reforms. The transition of former state-owned sugar mills to long-term private leasing was a deliberate policy decision to restore efficiency, professionalism, and accountability. The leasing framework was designed with a long-term horizon to allow millers adequate time to invest, stabilize operations, and realize returns, while benefiting from continued policy support, predictable market access, and structured trade arrangements," he explained.
Chesire stressed that exiting the safeguard does not mean withdrawing government support, tracing the safeguard’s origins to the early days of COMESA’s Free Trade Area and said all conditions tied to it have now been fulfilled.
"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. The Kenya Sugar Board, under the Ministry, continues to provide strong regulatory oversight, market coordination, and farmer protection to ensure an orderly, fair, and sustainable industry.
"Kenya initially sought the Sugar Safeguard at the launch of the COMESA Free Trade Area in 2001 under Article 61 of the COMESA Treaty, at a time when the industry required structured protection to undertake reforms. Over 24 years and eight extensions, the safeguard was governed by strict benchmarks set by the COMESA Council of Ministers, including tariff-rate quotas, productivity investments, sector restructuring, infrastructure development, and continuous performance monitoring. These obligations have now been fully met," he continued.
According to Chesire, the end of the safeguard marks completion, not abandonment, of reforms.
He reaffirmed the government’s commitment to farmers, millers, and consumers within the COMESA framework.
"The conclusion of the safeguard therefore marks the successful completion of a reform cycle, not its abandonment. 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 remains fully committed to safeguarding farmer livelihoods, supporting miller viability, and ensuring food security, price stability, and long-term growth of the sugar sector within the COMESA Free Trade Area," he concluded.
Elsewhere, this comes days after Chesire was elected to the International Sugar Organization (ISO), an intergovernmental body bringing together sugar-producing and sugar-consuming countries to promote cooperation, transparency, and stability in the global sugar market.
In a statement on Monday, December 29, National Treasury and Economic Planning Principal Secretary Chris Kiptoo congratulated Bosire on his election, describing it as a historic moment for Keny and the African continent.
He noted that Bosire is the first Kenyan and an African to be elected to the global body.
"Congratulations to Jude Chesire, Chief Executive Officer of the Kenya Sugar Board, on his election as Chairman of the International Sugar Organization.
"This historic achievement marks the first time a Kenyan and an African have been elected to lead this global body, underscoring Kenya’s growing leadership and influence in the international sugar sector," he said.
Kiptoo attributed the achievement to ongoing reforms in the sugar industry under President William Ruto’s administration.
"Under the leadership of President William Samoei Ruto, reforms in the sugar sector are now delivering tangible results. Governance has been strengthened, efficiency has improved, and confidence across the industry has been restored.
"Due to better access to fertiliser and other essential farm inputs, farmers are recording improved cane harvests and higher productivity," he added.
Kiptoo further noted that the reforms have translated into better earnings for local farmers, reducing reliance on imports and easing prices for consumers.
"Cane prices have increased from about Ksh4,100 per tonne in 2021 to approximately Ksh5,500 per tonne today, with payments being made on time. These reforms have also contributed to reduced sugar importation.
"As a result, sugar prices on supermarket shelves have become more stable, cheaper, and more affordable for consumers," he further said.
