Cartels, political protection exposed as unsafe industrial sugar diverted for local consumption

Sugar on a shelf /AI

Thousands of Kenyans could be consuming sugar that was never meant for household use as weak regulatory systems and greed by cartels expose Kenyans to danger, a lobby group has voiced concerns.

The alarm has been raised by the National Integrity Alliance following revelations surrounding the importation of 27,839 metric tonnes of industrial raw cane sugar allegedly diverted into the local retail market.

NIA said the latest revelations point to systemic regulatory collapse, political protection, and criminal profiteering at the expense of public health.

The sugar consignment of industrial raw cane sugar imported from Durban, South Africa and valued at approximately Sh1.5 billion, was allegedly brought into the country by Mombasa Sugar Refinery Limited under a customs code reserved for industrial sugar.

“Kebs has not been given statutory independence or enhanced enforcement powers. No dedicated food safety task force with prosecutorial referral authority has been established. The same institutions that failed in 2023 have failed again in 2026, and the same categories of perpetrators have exploited the same institutional gaps to harm the same population,” NIA said in a statement.

That classification attracts a preferential 10 percent duty rate, significantly lower than taxes charged on sugar intended for direct human consumption.

According to NIA, the sugar was then diverted, repackaged, and sold in the local market as ordinary consumer sugar.

The coalition warned that consumers had no practical way of distinguishing industrial sugar from table sugar without laboratory testing, meaning thousands of families may have unknowingly purchased potentially unsafe products.

“This is not just fraud. It is a direct assault on Kenyans’ constitutional rights,” the alliance said, citing violations of the right to health, food safety, consumer protection, and human dignity.

NIA said credible reports indicate the operation involved a well-organised network with links to senior levels of government, raising fears that sugar cartels continue to enjoy protection from enforcement agencies.

The statement also tore into the Kenya Sugar Board, saying the regulator has been crippled since 2023 after a court injunction blocked appointments to its board.

Without a quorum, the board has allegedly been unable to make binding decisions or properly oversee imports — creating fertile ground for fraud.

“At the time this scandal unfolded, the key regulator was effectively paralysed,” NIA said.

It said recommendations made by Parliament after that crisis were never implemented, allowing the same loopholes to be exploited again.

The coalition wants the Directorate of Criminal Investigations to immediately investigate directors of Mombasa Sugar Refinery Limited and Kibos Sugar over their alleged role in the importation and diversion of industrial sugar.

NIA is also seeking the suspension of all public officials linked to the scandal to pave the way for investigations.

Further, the alliance has urged the Ethics and Anti-Corruption Commission to open a corruption probe into claims of political protection for sugar cartels.

It also wants all sugar tied to the suspect consignment immediately withdrawn from the market, while Kenya Bureau of Standards officials who approved or failed to stop unsafe products face personal liability.