06.07.2026

Kenya eyes ethanol and renewable energy expansion

Kenya is looking to expand ethanol production and renewable energy generation as part of ongoing reforms aimed at transforming the country’s sugar industry, Deputy President Kithure Kindiki has said.

Speaking at the opening of the 68th International Sugar Organisation Seminar in Diani, Kwale County, Kindiki said the government is implementing a series of measures to address long-standing challenges in the sector, including poor management, delayed payments to farmers and workers, and low production levels, The Eastleigh Voice reported.

He said the reforms include restructuring the Kenya Sugar Board and leasing state-owned sugar factories to private operators to improve efficiency and attract fresh investment into the industry.

According to Kindiki, the reforms have already contributed to a significant increase in sugarcane cultivation, with the area under the crop expanding by about 200,000 hectares. He added that sugar production and farmer earnings have also improved, supported in part by the government’s fertiliser subsidy programme.

As part of the next phase of development, the government is encouraging sugar mills to diversify beyond sugar production into ethanol manufacturing and electricity generation. Some factories are being considered for cogeneration projects that would supply power to the national grid, while plans are also underway to increase ethanol production for use as a cleaner transport fuel.

“The sugar industry of the future is one that will produce not just sugar, but also ethanol, aviation fuel, renewable energy and other industrial products,” Kindiki said.

He also highlighted concerns over global trade policies, saying subsidies and restrictions in international sugar markets continue to place developing countries at a disadvantage.

Calling for greater investment in agriculture, Kindiki urged African governments and investors to modernise the sector through technology and innovation, making it more attractive to younger generations.

More details: https://www.chinimandi.com/kenya-eyes-ethanol-expansion-and-renewable-energy-as-sugar-sector-reforms-gain-momentum/

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