Thursday, May 23, 2024
Business

List of Largest Sugar Companies in Kenya, Their Owners


  • In accordance with the Sugar Directorate, large-scale business sugarcane manufacturing in Kenya started in 1922 with the development of two factories
  • After independence, the federal government sought to broaden the manufacturing of sugar as set out in Sessional Paper No. 10 of 1965
  • Amongst the private and non-private factories that have been established have been West Kenya Sugar Ltd, Sukari Industries, Mumias and Miwani

TUKO.co.ke journalist Japhet Ruto brings over eight years of expertise in monetary, enterprise, and know-how reporting, providing deep insights into Kenyan and international financial tendencies.

Sugarcane manufacturing in Kenya started within the nineteenth century when Indians settled in Kibos, Kisumu county.

Cane crushing to produce sugar.
Cane crushing. Kenya’s cane manufacturing elevated final 12 months. Photograph: Michele Jackson.
Supply: Getty Photos

TABLE OF CONTENTS

To start with, jaggery vegetation have been used to grind the sugarcane.

When did sugar manufacturing start in Kenya?

In accordance with the Sugar Directorate, large-scale business sugarcane manufacturing in Kenya started in 1922 with the development of two factories, Miwani in Kisumu county and Ramisi in Kwale county, with the primary product being sucrose extraction.

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Among the byproducts have been filter cake, bagasse, and molasses.

After independence, the federal government sought to broaden the manufacturing of sugar as set out in Sessional Paper No. 10 of 1965.

What’s Kenya’s sugarcane manufacturing?

The Kenya Nationwide Bureau of Statistics (KNBS) revealed the amount of sugarcane deliveries elevated from 7.8 million tonnes in 2021 to eight.7 million tonnes in 2022, primarily on account of beneficial climate situations in sugarcane-growing areas.

In the course of the interval below overview, earnings from sugarcane elevated from KSh 28.4 billion to KSh 39.3 billion.

Space below overview interval, sugarcane earnings 2022 from 223,000 hectares in 2021, whereas space harvested elevated by 26.1% from 92,400 hectares in 2021 to 116,500 hectares in 2022.

When have been cane millers established?

Acknowledging the trade’s significance, the federal government and the non-public sector labored to put it up for sale by making direct investments, primarily in cane processing factories.

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Among the many state-owned factories that have been established have been Muhoroni (1966), Chemelil (1968), Mumias (1973), Nzoia (1978), and South Nyanza (1979).

Privately owned millers embody West Kenya Sugar Firm Ltd (1981), Butali Sugar Mills Ltd (2011), and Transmara Sugar Firm Ltd (2011).

Others are Kibos Sugar and Allied Industries Ltd, Sukari Industries Ltd (2012), Kwale Worldwide Sugar Firm Ltd (2014), West Kenya Sugar Firm Ltd –Olepito Unit (2017), and Busia Sugar Trade Ltd (2018).

FX Pesa lead market analyst Rufas Kamau defined that the federal government may enhance the manufacturing sector by decreasing taxes.

“The federal government can improve the financial system by reducing tax charges on base merchandise similar to monetary merchandise, petroleum merchandise, agricultural inputs and electrical energy,” Kamau advised TUKO.co.ke.

In January, The East African reported that the Ministry of Agriculture and Crops Improvement put up Nzoia, South Nyanza (Sony), Chemelil, Muhoroni, and Miwani for leasing. The 5 factories account for a possible 30% of the market share.

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Greatest sugarcane firms in Kenya

1. West Kenya, Sukari and Olepito industries

In accordance with Enterprise Day by day, the Rai household controls half of Kenya’s sugar trade. They personal West Kenya, Naitiri, Olepito and Sukari Industries.

Tejveer Singh Rai manages West Kenya Firm Ltd, which produces the Kabras sugar model.

West Kenya Sugar Firm has a market share of 29.62%.

2. Butali Sugar Mills

Butali Sugar Mills is the second largest sugar-producing manufacturing facility in Kenya, with a market share of 16.07%.

The miller was established in January 2011 and has a capability of 2500 tonne crush capability per day (TCD).

The corporate supplies oblique employment to over 30,000 2500-tonne Kibos Sugar and Allied Industries Ltd

Kibos Sugar and Allied Industries Ltd is positioned in Kisumu and is owned by the Channan household.

It has a 3,500-tonne crush capability per day and manufactures the Star sugar model.

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In accordance with its web site, its nucleus farm is over 5,000 hectares. Farmers in Nyanza, Western, and elements of the Rift Valley domesticate over 100,000 hectares of cane day by day.

4. Sukari Industries Ltd

Billionaire Jaswant Rai owns Sukari Industries Restricted, a manufacturing facility based mostly in Riat, Kisumu.

The corporate’s market share stands at 14.26%.

5. Transmara Sugar Firm

Transmara Sugar Firm Restricted produces Mara Sugar.

In accordance with its web site, the manufacturing facility has been producing sugar since 2012 and has a capability of over 90,000 tonnes yearly.

Transmara Sugar Firm Restricted (TSCL) is a part of the Alteo Group.

What are sugar costs in Kenya?

The federal government lifted the five-month ban imposed on native sugar manufacturing in December 2023.

Kenyan sugarcane farmers received massive after West Kenya, Butali Sugar Mills and Mumias Sugar Firm elevated cane costs to over KSh 5,200 per tonne.

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Native sugar mills in Kenya produced 63,075 tonnes of the sweetener in February 2024, the very best quantity since they resumed operations.

Sugar costs in retail retailers throughout the nation eased to round KSh 150 to KSh 200 for 1kg pack.

Proofreading by Asher Omondi, present affairs journalist and replica editor at TUKO.co.ke.

Supply: TUKO.co.ke



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