KWALE, Kenya – Kenya is now looking beyond traditional table sugar production and embracing ethanol manufacturing as a strategic solution to revive the country’s struggling sugar industry, lower fuel costs and create thousands of rural jobs.
The shift follows growing interest in Brazil’s globally acclaimed sugarcane-to-fuel model, which has transformed sugarcane into a major source of clean energy, industrial fuel and economic growth.
Speaking during the opening of the 68th International Sugar Organization Seminar in Diani, Deputy President Kithure Kindiki and Agriculture Cabinet Secretary Mutahi Kagwe signaled what could become one of the most significant policy changes in Kenya’s sugar sector in decades.
The leaders said the government is now rethinking sugarcane not merely as a crop for sugar production, but as a strategic energy resource capable of easing Kenya’s fuel burden and reducing dependence on imported petroleum products.
The seminar highlighted Brazil’s success in using ethanol-blended fuel to stabilize gasoline prices, strengthen energy security and reduce reliance on crude oil imports. Presentation data shared during the conference showed that ethanol-based fuel in Brazil remains significantly cheaper than conventional gasoline.
Over the past five decades, Brazil has reportedly replaced more than four billion barrels of gasoline with ethanol, saving the country hundreds of billions of dollars while building one of the world’s most successful biofuel industries.
Deputy President Kindiki announced that the Kenyan government will review the Sugar Act and existing industry regulations to firmly anchor ethanol production within the country’s legal and economic framework.
He said the government will also work closely with the Energy and Petroleum Regulatory Authority (EPRA) to develop comprehensive fuel blending regulations.
The move marks Kenya’s clearest indication yet that sugarcane ethanol could become part of the country’s long-term fuel strategy as global oil prices remain volatile and pressure mounts on foreign exchange reserves.
At the center of the new policy direction is CS Mutahi Kagwe, who urged Kenya to stop focusing narrowly on sugar production while ignoring the broader economic opportunities available within the sugarcane value chain.
“We have focused completely on the farmer by increasing their income,” Kagwe said, warning that the global sugar industry has concentrated too heavily on “the sweetness of sugar and trade” while neglecting the welfare of farmers and workers who sustain the sector.
The Agriculture CS said Kenya must urgently diversify into ethanol production and other sugar by-products if the industry is to survive modern economic pressures and global energy disruptions.
“We are now thinking about ethanol seriously from sugar especially with the global disruption of fuel prices,” Kagwe stated.
In remarks that could redefine the future of Kenya’s sugar industry, Kagwe suggested that sugar itself may eventually become a secondary product from sugarcane processing.
“We want sugar to become a by-product in Kenya, not the only product,” he said.
The statement represents a dramatic departure from decades of policy centered almost entirely on sugar manufacturing despite persistent factory losses, ageing infrastructure, delayed farmer payments and rising debt across state-owned sugar mills.
Kenya is now studying Brazil’s integrated sugarcane economy, where ethanol production, electricity cogeneration, industrial alcohol and sustainable biofuels have transformed sugarcane into a strategic industrial crop.
CS Kagwe said Kenya intends to work closely with the International Sugar Organization to learn how the country can transition into a modern sugarcane-powered bio-economy.
He noted that reforms introduced under the Sugar Act 2024 are already laying the groundwork for industrial modernization, including investment in ethanol production, cogeneration and value addition.
According to the Cabinet Secretary, the future of the sugar industry lies beyond sugar itself and into green energy, industrial ethanol, sustainable packaging and circular economy solutions.
The government also linked ethanol production to climate resilience and energy security, arguing that locally produced biofuel could reduce dependence on imported petroleum while creating stable and predictable markets for sugarcane farmers.
Kenya’s sugar industry currently supports more than six million people directly and indirectly, particularly across western Kenya, where entire local economies depend heavily on cane farming.
With global fuel prices remaining unpredictable and governments increasingly turning to cleaner energy alternatives, Kenya’s planned transition toward ethanol production could reshape both the country’s energy landscape and the future of its sugar belt.
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