Sugarcane farmers reject Sh5,500 price, threaten industry-wide strike

Sugarcane farmers have rejected the government’s decision to lower the minimum cane price from Sh5,750 to Sh5,500 per tonne, warning of an industry-wide strike and a possible exit from sugarcane farming if the policy is not reversed. 

In a statement, farmers under the Sugar Campaign for Change (Sucam) said the move is a direct blow to their livelihoods and undermines efforts to sustain the sugar industry. 

Sucam chairperson Saulo Busolo said the new price is not sustainable and does not reflect the rising cost of production.

“We categorically reject the government’s decision to reduce the minimum price of sugarcane,” Busolo said. 

“This is a direct assault on farmers’ livelihoods and a betrayal of those who have kept the sugar industry alive through years of uncertainty, delayed payments and unstable markets."

Farmers argue that the Sh5,500 per tonne price is below production costs, citing increased expenses in land preparation, planting materials, fertilisers, agrochemicals, transport and labour. 

They warned that continued use of administrative pricing could force many smallholder farmers out of cane farming. 

The farmers also blamed sugar millers and government policy for worsening the crisis, accusing them of allowing increased sugar imports that have flooded the local market and depressed prices. 

They said millers, after benefiting from import licences, are now shifting the burden of falling prices and high operational costs onto farmers. 

“It is disingenuous for the government to protect millers who have flooded the market with imported sugar and then turn around to squeeze farmers’ earnings,” the statement read. 

Speaking to the Star separately, the Kenya Sugarcane Growers Association also rejected the new pricing and warned of industrial action. 

Secretary general Richard Ogendo said farmers may stop deliveries if the government does not intervene. 

“We reject the new price and are calling on farmers to clear any remaining stock as we issue an industry-wide strike notice,” Ogendo said. 

He added that the association plans to engage the Consumer Federation of Kenya to support their push against the decision, saying thousands of livelihoods are at risk. 

Farmers are now demanding an immediate reversal of the price reduction and restoration of a minimum price that reflects the real cost of production. 

They are also calling for an end to administrative pricing and the introduction of a transparent, market-linked pricing system, as well as tighter regulation of sugar imports. 

They warned that if the government maintains the new pricing, many farmers could abandon sugarcane farming, leading to loss of livelihoods and a possible collapse of rural economies that depend on the crop. 

“The government must choose: Protect farmers and stabilise the sector, or continue policies that risk collapsing the sugarcane economy,” Busolo said.