Government targets sugar mills as new source of electricity and biofuel
By Zablon Oyugi
Kenya is accelerating efforts to transform its sugar industry into a key contributor to the country’s energy sector, with the government promoting electricity generation and ethanol production as part of a broader strategy to reduce fuel imports, enhance energy security, and increase revenues across the sugar value chain.
Speaking during a visit to the West Valley Sugar Company, a flagship investment under the Kipchimchim Group, Cabinet Secretary for Agriculture and Livestock Development Sen. Mutahi Kagwe said the future of Kenya’s sugar sector depends on maximizing the value of sugarcane beyond sugar production.
According to the Cabinet Secretary, sugar factories should be positioned to utilize every component of sugarcane to produce sugar, electricity, ethanol, and other industrial products, creating new opportunities for economic growth and job creation.
Kagwe highlighted West Valley Sugar Company as an example of the sector’s untapped potential, noting that the factory currently generates five megawatts of electricity while using only about 30 percent of its available bagasse, the fibrous residue left after sugarcane processing.
“West Valley is producing five megawatts of electricity with only a fraction of its bagasse. At full capacity, it could generate up to 15 megawatts. This presents a huge opportunity for Kenya’s energy sector,” he said.
The CS called for faster implementation of frameworks that would enable sugar factories to sell surplus electricity to the national grid. He said cogeneration could provide additional revenue streams for millers and farmers while contributing to the country’s renewable energy supply and reducing reliance on imported energy sources.
In addition to power generation, the government is placing greater emphasis on ethanol production as part of efforts to lower Kenya’s fuel import bill. Kagwe said the administration would support ethanol blending programmes, arguing that increased use of locally produced ethanol could help cushion the country from global energy market volatility.
“If we blend ethanol with fuel, we will save foreign exchange and significantly reduce our dependence on imported petroleum products. Going the ethanol way is what this Government will support,” he said.
West Valley Sugar Company currently produces approximately 20,000 litres of ethanol daily, a capacity the CS described as a model for the future direction of Kenya’s sugar industry.
The visit also provided an opportunity for the government to highlight progress made under ongoing reforms in the sugar sector. Kagwe said sugar production had increased by about 22 percent over the past year, attributing the growth to the leasing of state-owned sugar factories and enhanced support programmes for farmers.
He assured workers in the industry that outstanding salary arrears inherited from financially distressed state-owned mills would be settled as part of the sector’s revival programme.
Kagwe further urged Kenyans to invest in sugar-related ventures, arguing that opportunities in sugar manufacturing, ethanol production, electricity generation, and value addition should not be dominated by foreign investors.
The CS also clarified that elections for farmer representatives to the Kenya Sugar Board are governed by law and must be conducted by farmers themselves, although legislative amendments are being considered to address challenges experienced in some regions.
He commended the Kipchimchim Group for demonstrating how local investment can drive agricultural industrialization. The group employs more than 7,000 people across its businesses and has invested in sugar manufacturing, ethanol production, power generation, retail, and logistics.
Among those present during the visit were Kipchimchim Group Chairman Alfred Soi, Managing Director Bernard Soi, K-Matt Supermarket CEO Brian Soi, and Kenya Sugar Board representative Samuel Lagat.