Investment in advanced technology by Kwale International Sugar Company (KISCOL) has rejuvenated sugarcane farming in Kenya’s coastal region, bringing hope to over 1,500 outgrowers. This development has not only extended the sugarcane crushing season but has also aligned with the government’s long-term goals for food security and economic growth in the agricultural sector.

Revitalization through Technology

KISCOL’s adoption of modern irrigation systems and the introduction of high-yield sugarcane varieties have extended the miller’s sugarcane crushing season from six to nine months annually. These advancements ensure a continuous supply of cane for processing, benefiting both nucleus estates and outgrowers.

David Ndirangu, chairman of the Kwale Sugarcane Outgrowers Association, highlighted that the new irrigation systems reduce reliance on rain-fed agriculture, allowing farmers to maintain steady production. “With this approach, our productivity has significantly increased, and our dependence on unpredictable weather patterns is now a thing of the past,” he said.

Introduction of High-Yield Varieties

KISCOL has introduced sugarcane varieties sourced from Australia, Brazil, and South America. These varieties promise higher yields and enhanced sucrose content, which translates to better sugar recovery rates during processing. According to Mr. Ndirangu, farmers can now achieve average yields of 110 tonnes per hectare, up from the previous average of 70–80 tonnes.

“This innovation improves the value of harvested cane and minimizes crop losses,” noted Ndirangu, adding that the financial benefits for farmers will foster increased participation in the industry.

Expanding Farming Operations

Since its establishment, KISCOL has increased the land under cane cultivation from 6,300 hectares to 9,477 hectares. The nucleus estate has grown from 3,710 hectares in 2015 to 4,791 hectares as of 2023. Similarly, outgrowers have expanded their farming area from 2,682 hectares three years ago to 4,686 hectares.

This expansion was made possible through a recent agreement with the government to compensate squatters, unlocking previously underutilized land for agriculture. The government’s Mashujaa Day commitment to resolving land disputes has reinforced its dedication to food security and the economic empowerment of local communities.

Renewable Energy Production

KISCOL has not only excelled in sugar production but has also ventured into renewable energy. The company generates 18 megawatts (MW) of green power from its operations, of which 10 MW is fed into the national grid. This initiative aligns with Kenya’s broader renewable energy goals and contributes to reducing the industry’s carbon footprint.

Aligning with National Agricultural Goals

Agriculture Cabinet Secretary Andrew Karanja has underscored the importance of leveraging surplus sugar production to benefit the economy. “We are focusing on exporting the surplus to generate additional income and improve the economies of our sugar belt areas,” Dr. Karanja said during the launch of Chemelil Sugar Company’s strategic plan in Kisumu County.

The government is also pursuing the privatization of five state-owned sugar mills. By leasing these mills to private investors, authorities aim to replicate the efficiency of privately-run mills like KISCOL. This move is expected to boost overall productivity and position Kenya as a competitive player in the global sugar market.

The Sugar Act 2024

Parliament recently passed the Sugar Act 2024, ushering in reforms designed to modernize the sugar industry. Key provisions of the Act include the establishment of the Kenya Sugar Board, whose leadership was appointed by President William Ruto. This board will oversee the implementation of industry reforms and ensure fair practices across the sector.

The Act also mandates regular market assessments and encourages public-private partnerships to inject capital and expertise into the industry. These measures are expected to address long-standing issues such as inefficiency, mismanagement, and competition from imported sugar.

Economic and Social Impact

KISCOL’s contributions extend beyond agriculture, providing employment for thousands and uplifting the livelihoods of farmers in the region. With the company planning to increase its crushing operations to 11 months next year, steady demand for sugarcane is anticipated.

Farmers like Ndirangu are optimistic about the future. “With more months of crushing, our harvests will be processed promptly, ensuring a reliable market for our produce,” he said.

Moreover, the government’s support, including favorable policies and investment in infrastructure, complements the private sector’s efforts, creating a synergistic approach to revitalizing the sugar industry.

Looking Ahead

KISCOL’s initiatives are a model of how technology and innovation can transform traditional industries. As the company continues to expand its operations and introduce high-efficiency practices, the potential for significant growth in Kenya’s sugar industry is evident.

The collaborative efforts of the government, private sector, and local farmers ensure that sugarcane farming remains a viable and lucrative venture, ultimately contributing to Kenya’s agricultural and economic resilience.

With a record surplus and increasing export opportunities, the future of the sugar industry looks promising, offering farmers and stakeholders a stable foundation for growth and prosperity.

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photo source: Google

By: Montel Kamau

Serrari Financial Analyst

25th November, 2024