By Abbas Nazil
Kenya is intensifying efforts to expand ethanol production and renewable energy generation as part of broader reforms aimed at transforming its sugar industry into a more efficient, diversified and sustainable sector, according to government officials.
Deputy President Kithure Kindiki announced the initiative while speaking at the opening of the 68th International Sugar Organisation Seminar in Diani, Kwale County, where stakeholders gathered to discuss global and regional developments in the sugar and bioenergy industries.
According to a report by ChiniMandi, Kindiki said the government is implementing structural reforms to address long-standing challenges in the sugar sector, including weak management systems, delayed payments to farmers and workers, and low productivity levels that have affected industry growth for years.
He explained that the reforms include the restructuring of the Kenya Sugar Board and the leasing of state-owned sugar factories to private operators in order to improve efficiency, attract investment and strengthen operational performance across the sector.
Kindiki noted that the reforms have already begun to yield results, pointing to an expansion in sugarcane cultivation of approximately 200,000 hectares, alongside improvements in sugar production levels and increased earnings for farmers supported by government agricultural subsidies.
As part of the next phase of transformation, the government is encouraging sugar mills to diversify their operations beyond traditional sugar production into ethanol manufacturing and electricity generation, creating additional revenue streams and supporting Kenya’s broader renewable energy goals.
He said some sugar factories are being considered for cogeneration projects that would allow them to supply surplus electricity to the national grid, while others are being positioned to increase ethanol output for use as a cleaner and more sustainable transport fuel.
Kindiki stated that the future of the sugar industry lies in diversification, noting that it will evolve into a multi-product sector producing sugar, ethanol, aviation fuel, renewable energy and other industrial by-products that support national development and energy security.
He emphasized that these changes are intended to modernize the industry, improve competitiveness and ensure that it contributes more effectively to Kenya’s economic transformation agenda.
The Deputy President also raised concerns about global trade imbalances, noting that subsidies and restrictive policies in international sugar markets continue to disadvantage developing economies and limit fair competition.
He called for increased investment in agriculture across Africa, urging governments and private sector players to adopt modern technologies and innovative practices that would improve productivity and make the sector more attractive to younger generations.
The 68th International Sugar Organisation Seminar brought together government officials, industry leaders, investors and development partners to explore opportunities for growth in sugar production, renewable energy integration and industrial manufacturing across the region.
Participants discussed the potential of bioenergy and ethanol as key drivers of economic diversification, particularly in sugar-producing countries seeking to reduce reliance on raw commodity exports.
The Kenyan government reiterated its commitment to supporting reforms that align agricultural development with renewable energy expansion, positioning the sugar industry as a central pillar in the country’s transition toward a greener and more diversified economy.
