Gov’t Issues 7-Day Ultimatum to Sugar Millers

The Kenya Sugar Board (KSB) has issued a seven-day ultimatum to sugar millers to pay farmers after receiving their sugarcane. 

In a notice on Thursday, August 27, KSB warned that millers who fail to meet the deadline will face sanctions, including interest charges on delayed payments.

The board noted that the standard seven-day payment period will now be backed by clear sanctions contained in contracts between farmers and millers.

“Sugar millers will have 7 days to pay farmers after delivery of sugarcane or face penalties, including interest on delayed payments, as the Government launches a tougher enforcement regime to protect growers from exploitation and put more money into farmers' pockets,” read the notice in part. 

KSB CEO Jude Chesire also said the board will take action against weighbridge malpractices that have resulted in farmers losing substantial amounts of cane during weighing.

Chesire revealed that KSB will procure mobile weighbridges to verify cane weights and strengthen enforcement independently. 

He also announced that the government has invested in cane-testing units as the industry moves towards a payment system that considers quality and sugar content rather than relying solely on weight.

Further, KSB directed millers to establish clear cane harvesting frameworks by September 10, as the government seeks to streamline harvesting, transportation and delivery of sugar cane. 

“Millers have further been directed to establish clear cane harvesting frameworks by September 10, as the Government seeks to streamline harvesting, transportation and delivery and end delays that leave mature cane deteriorating in farms,” the notice added. 

This comes months after KSB announced a new minimum sugarcane price of Ksh5,500 per tonne. 

In a letter addressed to sugar companies and cane buyers, the board confirmed that the revised price had taken effect immediately.

"This is therefore to notify you that a new sugarcane price of Ksh5,500 per tonne has been approved effective immediately," the letter read in part.

The board also said the new rate compares favourably with prices offered in neighbouring countries and directed millers to comply while ensuring prompt payments to farmers.