Kenya unveils plan to shift sugar industry toward ethanol and renewable energy
Kenya has unveiled an ambitious strategy to reposition its sugar sector as a diversified bio-economy and renewable energy hub, marking a significant shift from traditional sugar production toward higher-value industrial outputs.
According to Jude Chesire, Chief Executive Officer of the Kenya Sugar Board and Chairman of the International Sugar Organization the plan aims at unlocking the full potential of sugarcane by converting its byproducts into commercially viable products such as ethanol and green energy.
In his keynote address titled “Sweetening the Future,” Chesire underscored the need for the sector to move “beyond sugar” and adopt a broader agro-industrial model anchored in sustainability and innovation.
“We are rethinking the future through the lens of the bio-economy,” he said at the Informa Africa Sugar Conference in Nairobi, noting that long-term viability will depend on diversification and efficient use of resources.
At the core of the strategy is the scaling up of ethanol production from molasses, a byproduct of sugar processing that has traditionally been underutilized. The plan also prioritizes expanded generation of renewable energy using bagasse — the fibrous residue left after crushing sugarcane — for co-generation.
By maximizing the industrial use of molasses and bagasse, the strategy seeks to establish a zero-waste model across the sugar value chain. The approach is expected to stabilize revenues for millers, reduce operational costs, and create new income streams for farmers and investors.
The transition is also set to play a critical role in Kenya’s broader energy mix by contributing to renewable energy targets and reducing reliance on fossil fuels.
According to Chesire, the sugar sector supports more than 8 million livelihoods, making its revitalization a national priority. He said the reforms are designed not only to strengthen economic resilience but also to integrate the sector more firmly into Kenya’s manufacturing and energy ecosystems.
“This approach positions the sugar industry as a key driver of Kenya’s energy and manufacturing landscape,” he said.
To support the transition, the Kenya Sugar Board is spearheading modernization efforts aimed at improving productivity and sustainability. These include the adoption of high-yield cane varieties, mechanization of farming operations, and the use of precision agriculture technologies.
In a notable shift, the Board is also redefining its role from a traditional regulator to a strategic industry leader, with a focus on restoring farmer confidence through fair pricing mechanisms and transparent contractual agreements.
Chesire said the goal is to ensure farmers benefit equitably from emerging revenue streams tied to ethanol production, electricity generation, and other value-added products.
The strategy is aligned with global environmental, social, and governance (ESG) standards, with a strong emphasis on clean energy and climate-smart agriculture. By reducing waste and lowering carbon emissions, the reforms are expected to enhance the sector’s resilience to climate change.
Industry stakeholders say the move could boost Kenya’s competitiveness in regional and global markets, particularly as demand for sustainable, bio-based products continues to grow.
Chesire also called for stronger public-private partnerships and urged stakeholders to leverage the African Continental Free Trade Area to expand exports of ethanol and other bio-based products across the continent.
“With improved efficiency and diversified outputs, Kenya is positioning itself as a regional leader in agro-industrial innovation,” he said.
“We are at an inflection point. Kenya is ready to lead Africa’s next chapter with a diversified, sustainable, and competitive agro-industrial powerhouse.”
The strategy signals a bold reimagining of the country’s sugar sector, with implications extending beyond agriculture into energy, manufacturing, and climate policy.