Sugarcane farmers oppose proposed changes to sector financing under 2026 Bill

Sugarcane farmers and industry stakeholders expressed apprehension over proposed modifications to the management and financing of the sugar sector, outlined in the Crops Laws Amendment Bill of 2026. These concerns were voiced at a meeting on September 5, 2026, before the National Assembly Departmental Committee on Agriculture and Livestock, chaired by John Mutunga, in Machakos County.

The bill, proposed by Majority Party Leader Kimani Ichung’wah, aims to alter the roles of agricultural institutions and direct resources to the Kenya Agribusiness Development Corporation Limited (KADCO). Mutunga emphasized that KADCO's creation is to tackle financing issues in agriculture, suggesting it would unify the Agricultural Finance Corporation and the Commodities Fund under Treasury oversight.

However, the Kenya Sugar Manufacturers Association (KESMA) protested the proposed fund transfer, questioning whether the structural changes would enhance the sugar industry. Nick Oloo from KESMA expressed worries about accountability issues and disruption of existing financing arrangements under the Sugar Act of 2024. Stiang Atyang from the Kenya Association of Sugarcane and Allied Products (KASAP) urged lawmakers to preserve the advancements made by the Sugar Act 2024, asserting that the sugar industry had historically received a minimal share of financing despite being a significant sector.

William Kopi, chair of the Butali Sugarcane Farmers Association, cautioned that the new financing framework might affect the relationship between farmers, investors, and the government, potentially impacting sugarcane production and industry sustainability. While some stakeholders, like Michael Arum of the Sugar Campaign for Change, supported the amendments, arguing for an effective financing framework for smallholder farmers, the Agriculture and Livestock Committee will continue to review the proposed changes as it deliberates on the Crops Laws Amendment Bill, 2026.