Muwariziki Sugar Millers Limited has announced an ambitious plan to build a Kes1.5 billion (approximately US$11.52 million) sugar processing plant in Rangwe Sub-County, Homabay County.
This initiative is designed to boost local sugar production, reduce Kenya’s dependence on imported sugar, and stimulate economic development in the region.
According to an Environmental and Social Impact Assessment (ESIA) report submitted to the National Environmental Management Authority (NEMA), the proposed facility will feature a 1250-tonnes-per-day (TCD) sugar mill, with the capacity to expand to 1500 TCD.
Additionally, the plant will include a 20 kiloliters-per-day (KLPD) ethanol distillery and a 3-megawatt (MW) captive power cogeneration unit.
The factory will produce mill brown sugar, ethanol, bagasse, and molasses, alongside by-products like filter mud and boiler ash.
A key aspect of the project is the sustainable use of bagasse, which will fuel the cogeneration plant and ethanol distillery.
Excess bagasse could also be repurposed for paper or chipboard manufacturing, opening doors for ancillary industries and further economic diversification.
The factory plans to source its sugarcane primarily from outgrowers located within a 15-kilometer radius of Rangwe, fostering local agricultural partnerships and supporting smallholder farmers.
This development aligns with the Kenyan government’s broader strategy to revive the struggling sugar sector, which has been plagued by high operational costs and the closure of several major factories.
Recent policy measures, such as the Sugar Bill of 2019 and the reintroduction of the Sugar Development Levy, aim to strengthen the industry by funding cane development and research initiatives.
To further support the sector, the government has allocated Kes 600 million to the Kenya Sugar Research and Training Institute (KESRETI) for the development of high-yielding sugarcane varieties.
Additionally, a Kes 67 billion (US$518.4 million) debt write-off has been granted to five state-owned sugar companies to alleviate financial burdens and encourage operational efficiency.
Recent data from the Kenya National Bureau of Statistics (KNBS) highlights the positive impact of these reforms. In the third quarter of 2024, Kenya’s sugar imports decreased by 45%, from 162,189.1 tonnes in 2023 to 88,372 tonnes.
This reduction has significantly eased pressure on foreign exchange reserves, with sugar import expenditures dropping from Kes15.16 billion (US117.1million) in2023 to Kes7.89billion (US117.1million) in 2023 to Kes7.89 billion (US60.9 million) in 2024.
The establishment of Muwariziki’s sugar factory, coupled with ongoing government reforms, is poised to strengthen Kenya’s domestic sugar production capabilities.
This project not only promises to enhance the sector’s sustainability but also positions Kenya as a more self-reliant player in the global sugar market.
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