FREQUENTLY ASKED QUESTIONS ASKED ABOUT SUGAR

1. WHAT IS THE ROLE OF SUGAR DIRECTORATE
The Sugar Directorate is a Directorate under The Agriculture and Food Authority (AFA) the statutory institution with the mandate and responsibility to oversee the Regulation, Development and Promotion of sugar cane. Through the provisions of the AFFA Act (Act No. 13 of 2013), Crops Act (Act 16 of 2013).

The Directorate is the apex body of the Kenyan Sugar Industry

The mandate of the Directorate is to Regulate, Develop and promote the Kenyan Sugar Industry.

2. WHAT IS YOUR VISION AND MISSION FOR THE INDUSTRY

Vision: ‘To be a world-class multi-product sugar crop industry’.

Mission: ‘To enable an efficient, sustainable and globally competitive multi-product sugar crop industry’.

3. WHAT ARE YOUR VALUES
Values: Product and service excellence:
Through excellent product and service delivery it will strive to exceed customer expectations.

Stakeholder Partnership:
To optimize synergies in order to meet set goals by consciously and deliberately nurturing team spirit, collaboration and consultation.

Integrity:
To uphold virtues of integrity through honesty and fairness in all operations.

Accountability:
To strive to be responsible custodians of all resources entrusted to the industry in a professional and transparent manner.

Social Responsibility:
Endeavor to be socially responsible to society and pursue industry goals though socially acceptable practices that preserve the environment; promote socio-economic development, support vulnerable groups and HIV/AIDS and malaria programmes.

Gender Mainstreaming:
Embrace principles of gender equity, fairness and balance across gender.

4. WHO ARE YOUR CUSTOMERS
Individual Sugar cane Farmers, Farmer Groups and Associations
• Millers
• KALRO-Sugar Research Institute
• Government Ministries, and Departments
• State Corporations
• County Governments
• Donor Agencies
• Development Partners
• Universities, Tertiary Colleges and related research and training institutions
• Private Sector Extension Service Providers
• Financial Institutions
• Dealers in Sugar and sugar by-products
• Suppliers of goods and services
• Sugar Exporters/Importers
• Processors
• General Public
• International associations affiliated to scheduled crops

5. HOW DOES THE INDUSTRY CONTRIBUTE TO THE ECONOMY OF THE COUNTRY?

  • Sugar is used in every home
    It contributes 15% to Agricultural GDP and 2.75% of National GDP
    Provides direct and indirect employment to 500,000 workers along the entire value chain
  • The industry is the main economic activity in Western, Nyanza parts of Rift Valley and the Coastal region. It supports the evolution of towns around milling zones.
  • Contributes tax revenues to the Exchequer (VAT, Corporate Tax, personal income taxes, Cess).
  • Contributes to infrastructure development, research and factory rehabilitation through road construction as well as maintenance and construction of bridges through Commodity Fund.
  • To social amenities such as education, health, sports and recreation facilities’.
    Molasses is also a key ingredient in the manufacturing of various industrial products such as beverages, confectionery and pharmaceuticals.

6. WHAT SERVICE DO YOU OFFER TO YOUR CUSTOMERS?

  • Formulate and implement overall policies and plans for the development of the industry.Oversee the formulation of standard provisions governing the mutual rights and obligations of growers and millers;
  • Co-ordinate the activities of individuals and organizations within the industry;
  • Ensure optimum availability of sugar in the country
  • Collect, collate and analyze industry statistics and maintain a database for the industry;
  • Develop infrastructure to reduce distances and cost of transport;
  • Provide advisory services to growers and millers;
  • Finance the activities of the Sugar Research Institute under KARLO which is the research arm of the sugar industry;
  • License Millers;
  • License Importers/Exporters
  • Issue molasses permits
  • Facilitate the arbitration of disputes among stakeholders;
  • Acts as an intermediary between the Government and the industry;
  • Identify potential for investment in the industry and market investment opportunities in the industry both locally and internationally in collaboration with industry institutions and government;
  • Represents, promotes, articulates and lobbies for the interests of the industry in local, regional and international institution; e.g. EAC, COMESA, ACP-EU, WTO among others.

7. HOW ARE YOU PRATICULARLY SUPPORTING FARMERS AND HOW CAN THEY ACCESS THE LOANS?
The government made a decision to include sugar cane farmers onto the Government subsidized fertilizer program. Farmers can now access fertilizer at National Cereals Produce Board Depots in Bungoma, Kisumu, Kakamega, Yala, Muhoroni, Awendo, Kericho, Kilgoris, Busia (FTC) – Sugar cane farmers willing to procure subsidized fertilizer on cash basis are advised to do so directly from the nearest NCPB Depot at the Government subsidized prices of:

TYPE PRICE
KSHS. – 50 Kg bag
Urea 1,500.00
DAP 2,000.00
MOP 2,000.00
NPK CamgS 2,000.00
NPK Camg 2,000.00
CAN 1,500.00
Sulphate Ammonia 1,300.00

8. HOW CAN I ACCESS LOANS FOR SUGAR CANE FARMING
To facilitate easy access by individual farmers to the fund, the Commodity Fund was brought on board to cater for all the funds collected from the scheduled crops under AFFA.

9. HOW CAN I PARTICIPATE IN TENDERING FOR SUPPLY OF GOODS AND SERVICES?
All our tender requirements are advertised in the print media and on our website. Any qualified tenderer is free to participate in tendering.
The Sugar Directorate has set aside 30% of its tender requirements for women, people with disabilities and youth.

10. WHAT IS OUR NATIONAL PRODUCTION AND DEMAND
 Kenya produces an average of 600,000 against a demand of about 1M Metric tonnes of sugar, out of which 840,000 is for table consumption and the rest is for industrial use. Industrial sugar (refined white sugar) is imported from COMESA and rest of the world under TREO Scheme. The deficit table sugar is met through imports from COMESA countries.

The Directorate is currently promoting modernization of existing facilities and new investments that will enable the country produce more to meet its national demand.

11. HOW CAN I ACCESS SUGAR STATISTICS AND KNOW THE MECHANISMS OF SUGAR PRICING
The Directorate keeps track of sugar stocks on a weekly basis and the same is posted on our website www.agricutureauthority.go.ke
There is a Cane Pricing Committee which AFA constituted. This Committee sets prices for Sugar cane payments. Sugar Directorate does not control sugar prices. The same is determined by market supply and demand forces. We have however put in place strategies to bring down the cost of production, which will translate to reduced sugar prices in the long run.

12. WHAT ARE YOU DOING TO CURB ILLEGAL IMPORTS?
The Directorate has strengthened its surveillance unit to enable it deal with illegal imports and is currently carrying out a crackdown on illegal imports.
13. WHERE ARE YOUR OFFICES?

  • AFA Headquarters at Tea House Dagoretti Corner
  • Head Office in Nairobi is situated at Sukari Plaza Off Waiyaki way
  • Kisumu office at Al Imran Plaza 5th Floor
  • Kakamega Office AFC House 1st Floor
  • Mombasa Office NSSF Building 6th floor

14. HOW CAN A CUSTOMER MAKE INQUIRY OR REGISTER A COMPLAINT?

Complaints are received and recorded through the following channels:-

  • Complaints registers in regional offices
  • Complaints email, complaints@kenyasugar.co.ke or visit our website www.kenyasugar.co.ke and lodge a complaint
    Letters to the Head of Sugar Directorate, P.O. Box 51500 – 00200 Nairobi, Kenya