A new report by the World Bank and the Competition Authority of Kenya (CAK) reveals that government support for state-owned sugar companies distorts competition in Kenya's sugar sector.

• State-owned sugar mills, which are largely loss-making and inefficient, receive extensive financial backing and constitute approximately 15 percent of the market.
• The government wrote off Sh117 billion in debts from state-owned millers in 2023, following a Sh62 billion write-off in 2020.
• The report recommends reducing trade barriers, including relaxing non-tariff restrictions enforced by the Sugar Board and easing duty-free caps on COMESA sugar.

The World Bank and Kenya's Competition Authority (CAK) are urging the Kenyan government to reform its fertilizer subsidy program to provide farmers with greater choice and market-driven prices. A joint report highlights how the current program, NFSP-2, has limited farmer autonomy compared to the previous voucher-based system.

• The NFSP-2 program, adopted after the 2020 fertilizer crisis, accounts for 30–40 percent of national fertilizer sales as of June 2025.
• The report recommends modifying NFSP-2 to permit more last-mile retailers and introduce competitive bidding for future contracts, suggesting options like the lowest retail price under a fixed subsidy or the lowest subsidy required.
• The CAK is also called upon to strengthen anti-cartel enforcement to prevent anticompetitive practices like bid-rigging in the fertilizer market.

Kenya is urging China to eliminate tariffs on key agricultural exports like coffee, tea, and avocados to address a significant trade deficit. Agriculture Cabinet Secretary Mutahi Kagwe met with officials from the General Administration of China Customs (GACC) to push for faster clearance and zero duty on these commodities.

• Kenya imported $4.5 billion from China in 2024, while exporting only $290 million.
• Agriculture Cabinet Secretary Mutahi Kagwe highlighted current tariffs: 8 percent for non-roasted coffee, 20 percent for roasted coffee, 15 percent for tea, and up to 20 percent for avocados.
• Kenya has completed technical submissions for products including mangoes, dried chillies, green grams, dried fruits and plant-based medicinal materials, awaiting approval from GACC.