Wednesday 21 January 2015

Kenya's raw sugar production expected to rebound in 2015


Kenya’s raw sugar production is expected to rise 4 percent to 617,039 tonnes in 2015, buoyed by extra factory capacity and improved supply of cane, the industry regulator said on Wednesday.

East Africa's biggest economy has an annual sugar deficit of around 200,000 tonnes, which is usually filled by imports from other producers in the region. The country is struggling to improve output due to relatively high production costs and loss-making sugar factories.

The Kenya Sugar Directorate said Kenya produced 591,658 tonnes of sugar in 2014, a 1.4 percent drop from a record harvest of 600,179 tonnes in 2013.

Mumias sugar factory in western Kenya was closed for a period to allow its cane to mature and for maintenance, she said. There was also an unscheduled closure of Kibos sugar factory after its boiler broke down, as well as a scheduled shutdown of West Kenya sugar Company for maintenance, said Mkok.

A fourth miller, Soin Sugar Company was also shut for the entire second-half of 2014 to allow for ongoing factory modernisation, the regulator said, affecting overall performance of the industry.

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