Kenya has exited a 24-year Comesa sugar safeguard, ending protections that allowed duty-free imports to bridge domestic production gaps. The move follows domestic industry growth and signals a shift toward competitive market engagement, though new safeguards are under discussion to manage cheaper regional imports.
Kenya’s sugar industry is navigating a pivotal transition after officially ending its 24-year exemption from Comesa’s regional trade rules, which expired on November 30, 2025. The decision marks the conclusion of a protective regime that allowed Nairobi to impose strict import quotas, shielding its less-efficient domestic producers from cheaper regional competitors. However, the government is now exploring new diplomatic measures to balance local industry needs with regional trade obligations, as revealed in statements from Cabinet Secretary Lee Kinyanjui and industry reports.
A Legacy of Protection Ends
The Comesa sugar safeguard, first introduced in 2001, granted Kenya a 350,000-tonne annual quota for duty-free imports from member states. This measure was designed to stabilize the sector while reforms were implemented to improve efficiency. Over eight extensions, Kenya worked to meet Comesa’s benchmarks, including modernizing state-owned mills and boosting domestic production. By 2025, the government declared these objectives achieved, leading to the safeguard’s formal termination.
The exit came after years of pressure from Comesa members who objected to Kenya’s prolonged protection. The previous quota had been a lifeline for local producers, who struggled to compete with lower-cost imports from countries like Uganda and Mauritius. However, the government now argues that domestic capacity has matured, with sugar production surging 76% between 2022 and 2025, reaching 815,454 metric tonnes, according to the Kenya Sugar Board.
New Measures in the Works
Despite the exit, Kenya is not abandoning protections entirely.
The proposed measures include discussions on diversifying Comesa members’ export markets beyond the region, potentially directing sugar to Middle Eastern and Far East markets. This approach would allow Kenya to maintain some control over imports while avoiding direct trade conflicts. However, no formal decisions have been announced, and the government emphasizes that the focus is on reviewing the impact of Kenya’s sugar industry vis-a-vis our Comesa engagement,
as Kinyanjui noted.
Industry Growth and Ongoing Challenges
The Kenya Sugar Board highlights significant progress in domestic production, driven by expanded sugarcane acreage (up 19.4% to nearly 290,000 hectares) and improved efficiencies. However, local output still falls short of the national demand of about 1.1 million tonnes annually. To bridge this gap, the government plans to continue controlled imports from Comesa and other approved sources, ensuring price stability for consumers and market certainty for producers.
Industry leaders warn that full self-sufficiency may take years. The Kenya Sugar Board’s Jude Chesire stated that the exit from the safeguard does not mean an end to support, emphasizing continued regulatory oversight and market coordination. The foundation of this new-found confidence is a fundamental shift in policy and perspective,
nairobilawmonthly.com reported, citing Chesire’s remarks.
The coming months will test Kenya’s ability to balance domestic interests with regional trade commitments. Key questions remain: Will new safeguards be formalized, and how will they affect Comesa’s broader trade dynamics?
For now, the government maintains that the focus is on establishing our volumes
and projecting future deficits or surpluses. As Kinyanjui stated, It is not good for me to pre-empt what we are likely to do because sugar is a global commodity.
The next critical step will be the implementation of private leases for state-owned mills, which are expected to boost efficiency and capacity in the coming years.