The Kenyan government has confirmed that all outstanding payments to Mwea rice farmers have been fully settled, aligning with an agreement between farmers and the Kenya National Trading Corporation (KNTC). This significant development was announced by Mwea Rice Growers Multipurpose Co-operative Society (MRGM) Managing Director Anthony Waweru during a visit by senior government officials.

• MRGM reported a carry-over of less than one percent from 2025 into 2026, a substantial improvement from nearly 30 percent the previous year.
• MRGM, the country’s oldest and largest rice cooperative, accounts for about 65 percent of Kenya’s total rice production.
• Concerns about rice imports affecting local farmers were dismissed, as Mwea Pishori rice serves a premium niche market, retailing at KES 140–160 per kilogram, compared to imported rice at KES 80–100 per kilogram.
• Rice production in Kenya has steadily increased, with paddy production projected to reach 302,000 MT in 2026, equivalent to 181,200 MT of milled rice.

Despite concerns over rising costs, Kenya's sugar supply is secure, with regulators assuring no panic is necessary even after a challenging production period beginning in 2025 and extending into early 2026.

• Sugar production fell to 613,000 metric tonnes in 2025 from 815,000 metric tonnes the previous year, a decline attributed to a managed transition period.
• According to CEO Jude Chesire of the Kenya Sugar Board, the decline was expected and part of a process to protect farmers and allow cane to mature fully, leading to temporary factory closures.
• Four government-owned mills were transferred to private investors, receiving KSh12.5 billion in upgrades, contributing to reduced milling capacity during renovation but securing long-term production.

A delegation of Chinese investors is visiting Kenya to explore significant investment opportunities in the country’s infrastructure and agricultural sectors, with an emphasis on development and boosting food security.

• The trade delegation comprises 16 Chinese companies interested in various sectors in Kenya.
• Martin Hang, founder and chairman of Fortune Generation, highlighted Kenya’s conducive policy framework as a draw for foreign investment.
• Kenya is seeking to leverage Chinese expertise for agricultural value addition and to improve regional connectivity through infrastructure projects like the Lamu Port-South Sudan-Ethiopia Corridor (LAPSSET).

The Institute of Public Finance (IPF), a Kenyan think tank, has issued a warning that reduced funding for the agricultural sector could impede its growth and exacerbate food insecurity in Kenya.

• For the 2024/25 financial year, the national government allocated Sh76.9 billion to agriculture, a significant 18.3 percent decline from Sh94.2 billion in 2023/24.
• The IPF emphasized that public spending on agriculture has not increased as expected, failing to align with government commitments to boost productivity and resilience.
• Despite funding challenges, the sector saw gains in 2023/24, with tea production rising 17 percent and marketed milk volumes increasing by 6.9 percent.