The Kenya Sugar Board is steering the country’s sugar sector away from traditional milling toward a diversified bio-economy model centred on ethanol production, renewable energy from bagasse, and full utilisation of industrial molasses.
Jude Chesire, CEO of the Kenya Sugar Board and Chairman of the International Sugar Organization, outlined the vision while addressing the Informa Africa Sugar Conference in Nairobi. In his keynote titled “Sweetening the Future,” he called for a strategic pivot to unlock the full value of the sugarcane crop and reduce reliance on raw sugar alone.
“We are rethinking the future through the lens of the bio-economy,” Chesire told industry leaders and stakeholders gathered at the Villa Rosa Kempinski.
Three Pillars of Diversification
The shift rests on three main pillars. First, mills are scaling up ethanol production by distilling more molasses to meet growing industrial and fuel blending demand. This provides a cleaner alternative to fossil fuels and creates new revenue streams.
Second, the industry is expanding green energy generation using bagasse — the fibrous residue left after crushing cane — for co-generation. Surplus electricity can feed into the national grid, turning a former waste product into a valuable renewable resource.
Third, greater focus is going into industrial molasses applications across emerging bio-based sectors. The goal is to ensure nothing from the sugarcane value chain goes to waste.
This approach helps mills lower operational costs and protect against volatile global sugar prices. It also positions the sugar sector as a key anchor for Kenya’s energy and manufacturing ambitions while supporting the country’s renewable energy targets.
Modernisation and Farmer Support
To drive the transition, the Kenya Sugar Board is pushing aggressive modernisation. Plans include introducing high-biomass cane varieties, mechanising field operations, and adopting GIS mapping with precision agriculture tools to close yield and efficiency gaps.
Chesire stressed the need to restore confidence among the over eight million Kenyans whose livelihoods depend on the sector. The board has reimagined its role from a traditional regulator to a strategic sector leader, emphasising fair pricing, transparent agreements, and direct benefits for growers from ethanol and energy streams.
New policies under the Sugar Act 2024 aim to strengthen the entire value chain, from farm to factory. Improved efficiency and sustainability will help the industry meet both domestic needs and export opportunities.
Alignment with Global and Continental Goals
The bio-energy focus also supports Environmental, Social, and Governance (ESG) standards. By adopting climate-smart practices and reducing the carbon footprint, Kenyan sugar producers can compete better in international markets.
Chesire called for a “Partnership for Transformation” that leverages the African Continental Free Trade Area (AfCFTA). He said Kenya can export not just sugar but a wider range of bio-based industrial products across the continent.
“We are at an inflection point,” he concluded. “Kenya is ready to lead Africa’s next chapter by transforming our sugar industry into a diversified, sustainable, and competitive agro-industrial powerhouse.”
The strategy comes as the sector navigates recent production challenges but eyes recovery through policy reforms and private sector involvement. Industry players see diversification into ethanol and co-generation as essential for long-term viability and job creation in sugarcane-growing regions.
Stakeholders at the conference welcomed the roadmap, noting that successful implementation could strengthen Kenya’s position in both the regional and global sugar and bio-energy markets.
