Pulse.ng logo
Go

In Kenya African country secures 2-year deal to keep out cheap sugar imports

Experts have blamed the high cost of production for the problems facing the country's sugar industry

  • Published:
Workers arrange packets of sugar on a conveyor belt at the Mumias sugar factory in western Kenya play Workers arrange packets of sugar on a conveyor belt at the Mumias sugar factory in western Kenya (Reuters)

Join the "sabi" clique. Don't miss a thing, get the latest updates to fuel your conversation daily

By signing up , you agree to our Privacy Policy and European users agree to the data transfer policy



Thank You! You have successfully subscribed to receive pulse.ng daily newsletter.

Kenya has won a two-year extension of sugar import limits from a regional trade bloc to give it more time to overhaul its ailing sugar sector, a local daily newspaper said on Wednesday.

The arrangement capping cheaper imports from the Common Market for Eastern and Southern Africa (COMESA) was scheduled to expire soon.

The deal was struck at a meeting of COMESA in Madagascar, the Standard newspaper quoted a top official in the country's ministry of industrialization and trade as saying.

The government is selling shares in some of its sugar factories, hoping to bring in capital and the expertise needed to pull the sector out of the doldrums.

Kenya produces about 600,000 tonnes of sugar a year, compared with annual consumption of 800,000 tonnes. The deficit is covered by strictly controlled imports from COMESA.

Experts have blamed the high cost of production for the problems facing Kenya's sugar industry. Poorly funded government factories have aging machinery that is prone to breaking down. The roads in most sugar growing areas are also in poor shape.

The Kenya Sugar Directorate estimates the cost of producing a tonne of sugar at about $570 in western Kenya compared with $240-$290 in rival producers such as Egypt.

Do you ever witness news or have a story that should be featured on Pulse Nigeria?
Submit your stories, pictures and videos to us now via WhatsApp: +2349055172167, Social Media @pulsenigeria247: #PulseEyewitness & DM or Email: eyewitness@pulse.ng. More information here.

X
Advertisement