Govt support to state-owned sugar mills distorts competition, report
NAIROBI, Kenya, Nov 26 - Government support to state-owned sugar companies is undermining fair competition in the sector, a new report shows. The World Kenya breaking news | Kenya news today |..
✨ Key Highlights
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.
Continue Reading
Read the complete article from Capital Business
Part of the Day's Coverage
World Bank & CAK Push for Agricultural Reforms as Kenya Seeks Tariff Cuts from China - November 2025
A joint 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. In a separate report, the two bodies are also urging the Kenyan government to reform its fertilizer subsidy program to provide farmers with greater choice. The report highlights how the current program, NFSP-2, has limited farmer autonomy compared to a previous voucher-based system. On the trade front, Kenya is urging China to eliminate tariffs on its key agricultural exports. 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 commodities like coffee, tea, and avocados to address a significant trade deficit.
