Sugar Farmers Raise Concerns Over Proposed Changes to Sector Financing

Sugar farmers and industry stakeholders have expressed concerns over proposed alterations to the sugar sector's management and financing under the Crops Laws Amendment Bill, 2026. The Bill, sponsored by Kimani Ichung'wah, aims to modify the roles of agricultural institutions and allocate funds to the Kenya Agribusiness Development Corporation Limited (KADCO).

National Assembly’s Departmental Committee on Agriculture and Livestock, chaired by John Mutunga, heard the stakeholders' submissions, with the committee focusing on supporting agriculture rather than reducing its funding. Mutunga highlighted the need to protect the poorly funded agriculture sector, yet some stakeholders questioned whether the proposed changes would bolster existing institutions or introduce new challenges.

Nick Oloo of the Kenya Sugar Manufacturers Association (KESMA) raised concerns about transferring funds from the Sugar Development Levy to KADCO, expressing worries about accountability and the Sugar Act, 2024. Atyang of KASAP urged lawmakers to safeguard gains under the Sugar Act, 2024, and questioned certain aspects of the proposed framework, comparing it to the Agricultural Development Corporation's role.

William Kopi, chairperson of the Butali Sugarcane Farmers Association, warned that the financing model might affect the relationship between investors, the government, and farmers, potentially impacting sugarcane production. While not all stakeholders opposed the changes, Michael Arum of the Sugar Campaign for Change supported the amendments, emphasizing the need for an effective financing framework for smallholder farmers, drawing parallels with successful models in Malawi and South Africa.

The debate over agricultural fund management has captured the attention of the Agriculture and Livestock Committee as it continues to scrutinize the Crops Laws Amendment Bill, 2026.