Overview:
Traders are turning to Uganda to fill Kenya’s sugar supply gap after factory closures in western Kenya sent the regional import bill soaring by 700 percent.
Ugandan sugar millers have secured a significant financial boost as exports to Kenya jumped nearly fivefold following a production crisis in the neighboring country.
New data shows that Kenyan orders for Ugandan sugar climbed by 478.82 percent to 4.36 billion shillings during the quarter ending September 2025. The surge in trade came after a temporary pause on sugar milling in western Kenya left traders and industrial users scrambling to fill a massive supply gap.
The regional market shift saw Kenya’s total sugar import bill from Uganda and Tanzania increase more than sevenfold. The Kenya Sugar Board directed seven factories in its western region to halt operations for several months last year to allow immature crops to recover, citing a severe shortage of mature cane.
While Uganda accounted for the bulk of the imports, Tanzania emerged as a surprise competitor, seeing its own exports to Kenya soar from 262 million shillings to 49.6 billion shillings.
The reliance on Ugandan millers marks a sharp U-turn for Kenya, which briefly enjoyed a sugar surplus in late 2024. At that time, President William Ruto hailed the revival of the Kenyan sugar industry, citing subsidized fertilizers and expanded acreage as reasons the country had finally become self-sufficient.
However, that rebound proved temporary. Erratic weather and poor management of the replanting cycle led to a renewed supply crunch in 2025. With Kenyan domestic production faltering, Ugandan factories and exporters have stepped in to meet the demand from Kenyan households and food manufacturers.