The government has directed millers to adhere to the minimum price of cane adjusted from the current Sh3,700 per tonne to Sh4,040 per tonne effective April 1, 2021.

The upward review of the minimum recommended cane price to be paid to the farmer was arrived at by the Sugarcane Pricing Committee owing to the prevailing high sugar ex-factory prices over the past three months in Kenya.

In a statement delivered from Kilimo House, Nairobi on Tuesday, the Agriculture Cabinet secretary asked any farmer being paid less to report to the Agriculture and Food Authority (AFA).

“Any cases of non-compliance will attract a fine of not less than Sh500,000 or one-year imprisonment as per Section 37 of the Crops Act, 2013,” he said.

At the same time, a new model of paying cane deliveries based on quality is set to replace the century-old system that paid in terms of tonnage.

In the statement that dwelt on a wide range of issues in the sugar industry, Munya also said that a roadmap for implementation of the Quality-Based Cane Payment system is at an advanced stage.

“We hope to roll it out in July 2021,” he said, adding that the system will, among other things, serve as an incentive for high quality management in production process.

Read the Statement in Full