KAMPALA, UGANDA – Uganda’s sugar exports to Kenya have plummeted, with imports dropping to 18 metric tons (MT) in the nine months to September 30, 2024. This accounts for only 16.2% of Uganda’s total sugar exports, a significant decline from previous years.
Tanzania is currently Uganda’s second-largest sugar market, closely followed by South Sudan, while Kenya ranks third. Uganda’s Industry Minister, David Bahati, attributed the decline to frequent policy reversals and restrictive permit issuance.
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“Uganda can supply between 120,000 and 150,000 tonnes of sugar to Kenya annually, but these policy changes have hindered our market access,” Minister Bahati explained.
Bahati revealed that Uganda is engaging Kenya to resolve these issues. “We’re working closely with our Kenyan counterparts to ensure seamless trade and address the challenges facing our sugar exporters.”
To reduce dependence on traditional markets, Uganda is promoting value addition on brown sugar. Companies like Kakira Sugar Works Limited (KSWL) in Jinja and the Sugar Corporation of Uganda Limited (SCOUL) in Lugazi are producing molasses ethanol.
“We’re coming up with a regulation to allow power generated by sugar millers to be connected to the national grid,” Bahati announced.
Kakira Sugar Limited, a local sugar producer, has started commercial production of ethanol. SCOUL produces maize ethanol as well.
In September, Kenya’s Ministry of Agriculture and Livestock Development clarified that sugar from the Common Market for Eastern and Southern Africa (COMESA) and the East African Community (EAC) is not banned. However, sugar from outside these blocs is restricted.
Andrew Karanja, Cabinet Secretary for the Ministry of Agriculture and Livestock Development, explained that this measure aims to protect Kenya’s domestic market. Projections indicate 16 local factories could produce 800,000 metric tonnes of sugar this year.
With Kenya’s average annual sugar consumption estimated at 950,000 metric tonnes, Ugandan millers see an opportunity to cover the shortfall.
Key Trade Statistics:
- Uganda’s sugar exports to Kenya: 18 MT (16.2% of total exports)
- Uganda’s annual sugar supply capacity to Kenya: 120,000-150,000 tonnes
- Kenya’s average annual sugar consumption: 950,000 metric tonnes
- Kenya’s domestic sugar production: 800,000 metric tonnes (projected)
The decline in Uganda’s sugar exports to Kenya highlights the ongoing trade tensions between the two nations, prompting Uganda to explore alternative markets and diversify its economy.
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