Agriculture Cabinet Secretary Mutahi Kagwe has unveiled a sweeping reform package targeting Kenya’s sugar, tea and miraa sectors, outlining new policies aimed at restoring profitability, protecting farmers’ earnings and modernizing critical agricultural value chains.
Appearing before the National Assembly, Kagwe detailed the government’s new approach to managing state-owned sugar mills, which will now be leased to private companies for 30 years under strict regulatory oversight. He said the policy shift anchored in the Sugar Act, 2024 seeks to attract private capital, upgrade ageing infrastructure and boost cane production, while ensuring factories remain government-owned after the lease period.
Nzoia, Chemelil, Sony and Muhoroni mills have been leased to West Kenya Sugar, Kibos Sugar & Allied Industries, Busia Sugar Industry and West Valley Sugar Company. The companies are required to invest heavily in cane development, modernize equipment, diversify into power generation and bioethanol, and strengthen out-grower systems to secure sustainable cane supply.
Kagwe emphasised that the Kenya Sugar Board and the Competition Authority will maintain strict oversight to protect farmers and ensure no single company dominates the market. He added that proceeds from the leases will directly benefit local farmers through bonuses and cane-development initiatives, as the government steps back from direct mill management.
In the tea sector, the CS announced reforms aimed at raising farmers’ earnings to Sh100 per kilogramme of green leaf by 2027. The plan includes stricter enforcement of quality standards, establishment of a Tea Quality Laboratory in Mombasa and a strategic national program to improve green-leaf quality. The government is also supporting factory modernization with a Sh3.7 billion concessional loan facility and phasing out the reserve price to stimulate demand.
Kagwe further revealed that the ministry is reviewing the bonus payment model to allow quarterly disbursements, easing financial pressure on households. He said the reforms are designed to ensure fair, transparent and uniform earnings across regions, addressing longstanding disparities between factories east and west of the Rift Valley.
On miraa, Kagwe confirmed that Kenya exports between 13 and 17 tonnes daily to Somalia, dismissing reports of 40-tonne shipments as inaccurate. He credited new verification measures such as mandatory airway bills, KEPHIS inspections and harmonized data systems for restoring order in the miraa value chain.
The government is also exploring additional export routes, including new landing points in Somalia and direct flights from Isiolo, while supporting farmers through irrigation projects, cooperative seed capital and ongoing research by the Miraa Research Institute.
Kagwe said the reforms across the three sectors reflect the government’s commitment to professionalizing agricultural systems, reducing losses and unlocking greater value for farmers. He added that the changes are structural, not cosmetic, and are central to securing predictable and dignified incomes for Kenyan producers.
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