Africa-Press – Kenya. Kenya has formally exited the COMESA Sugar Safeguard regime after 24 years, marking a significant development in the country’s long-running efforts to reform and stabilise its sugar industry.
The safeguard, which lapsed on November 30, 2025, was a temporary trade protection measure intended to give Kenya’s sugar sector time to restructure and improve its competitiveness within the regional market.
Government officials say the decision reflects confidence in the progress made within the industry, arguing that the sector is now better managed and supported by clearer policy direction.
Farmers, millers, workers and investors have been assured that the transition will not destabilise the sector but is intended to reflect increased readiness to compete within the COMESA Free Trade Area.
According to the Kenya Sugar Board (KSB), the safeguard had achieved its intended purpose as a reform mechanism.
Over its 24-year duration, during which it was extended eight times, Kenya implemented benchmarks set by the COMESA Council of Ministers.
These included tariff-rate quotas, investments aimed at improving productivity, infrastructure development and ongoing monitoring of sector performance.
“The conclusion of the safeguard marks the completion of a reform cycle,” the Board said, adding that the industry is entering a new phase focused on competitiveness, value addition, regional integration and sustainability.
In recent years, policy emphasis has shifted from trade protection to competitiveness, with a focus on efficiency, diversification and value addition.
The Ministry of Agriculture, working through the Kenya Sugar Board, has encouraged millers to reduce reliance on table sugar by adopting integrated industrial processing models.
Internationally, sugarcane is increasingly treated as an industrial raw material rather than a single-output crop.
In some markets, refined sugar represents only part of the value chain, with additional returns generated from ethanol produced from molasses, electricity generation from bagasse, paper and board manufacturing, and industrial alcohols.
Industry observers note that such integrated production models can lower overall production costs and help explain why some sugar-exporting countries can offer lower prices.
The Kenya Sugar Board says similar diversification efforts are being supported locally, with millers encouraged to expand by-product processing to improve cash flows and enhance farmer payments.
On the production side, the sector has recorded notable growth in recent years.
Sugarcane acreage increased by 19.4 per cent, from 242,508 hectares to 289,631 hectares, attributed to favourable rainfall, improved access to certified seed cane and fertiliser subsidy programmes.
National sugar output rose from 472,773 metric tonnes in 2022 to 815,454 metric tonnes, according to official data.
Kenya’s annual sugar demand is estimated at 1.1 million metric tonnes.
While domestic production has increased and narrowed the supply gap, authorities say further capacity expansion, factory rehabilitation and optimisation of recently leased mills will take time.
In the interim, the government says it will continue to supplement local production through controlled imports from the COMESA region and other approved sources.
Officials argue that this approach is intended to balance consumer price stability, producer certainty and national food security, noting that population growth continues to drive demand and that surplus availability within the region can fluctuate.
The sector remains vulnerable to climatic conditions, with dry spells potentially affecting output, while favourable rainfall is expected to boost production.
These factors, according to the Kenya Sugar Board, are incorporated into ongoing planning and market coordination.
Looking ahead, authorities maintain that the medium-term outlook is positive, citing expected improvements in farm productivity and expanded milling capacity.
A key component of the reform process has been the leasing of former state-owned sugar mills to private operators, a policy the government says is intended to improve efficiency, accountability and long-term investment.
The government has emphasised that exiting the safeguard does not signal a withdrawal of support for the industry.
Regulatory oversight, market coordination and farmer protection measures will continue under the Kenya Sugar Board, officials say.
Kenya first applied for the Sugar Safeguard in 2001 under Article 61 of the COMESA Treaty, when the sector was considered in need of structured protection to undertake reforms.
With the safeguard now concluded, the government says it remains committed to supporting farmer livelihoods, miller viability and food security within the COMESA Free Trade Area.
