Sugarcane farmers in Kisumu County's sugar belt have rejected a Bill that would strip the Kenya Sugar Board of its lending powers. They told MPs the plan could reverse reforms that have barely started and bring back the cartels blamed for the industry's decline.

The growers spoke on Tuesday at public participation forums in Muhoroni and Chemelil. The forums were held by the National Assembly Departmental Committee on Agriculture and Livestock, which is collecting views on the Crops Laws (Amendment) Bill, 2026.

What the Bill proposes

The Bill is sponsored by Majority Leader Kimani Ichung'wah and amends three laws: the Sugar Act, 2024, the Kenya Agricultural and Livestock Research Institute Act and the Tea Act.

Its most contested proposal moves the lending functions of the Kenya Sugar Board, the Tea Board of Kenya and the Kenya Agricultural and Livestock Research Organisation (KALRO) to the Kenya Agribusiness Development Corporation (KADCO). This new limited company would be set up under the Government Owned Enterprises Act, 2025.

'The Sugar Board is yet to be constituted'

Kenya Association of Sugarcane and Allied Products chairperson Atiang Atiang said it made no sense to amend a law that has not yet been put into effect.

"The Sugar Board is yet to be constituted. We are waiting for the elections to elect board members. What is the sense of bringing amendments to an Act that you yourselves enacted and have not seen implemented?" he asked.

He likened the proposed corporation to the former Agricultural Development Corporation, which he accused of contributing to the near collapse of the sector and failing to pay farmers.

Maurice Omondi, who represented the Muhoroni branch of the farmers' federation, warned that the model could open the door to cartels again. Dr Mboya Kagumba, a former Kenya Sugar Board director who spoke for the Chemelil, Nandi Hills and Soin zones, said the plan resembled earlier restructuring under the Agriculture and Food Authority, which he said nearly brought the industry down.

Fears over the levy and centralisation

Gerald Ruto of the Rift Valley Sugarcane Planters Association said moving functions and financing to KADCO could disrupt the four per cent levy that supports growers.

"In the spirit and age of devolution, removing the functions and management of the sector away from the farmers and centralising it in Nairobi is ill-advised," he said, and called for farmers' societies to be revived to work alongside the Sugar Board.

Nick Oloo, an advocate for the Kibos and Chemelil millers, criticised what he called reactive policymaking. "It is alarming that the Government has perfected the art of shooting and then aiming later," he said, adding that there was no policy need to change the lending structure.

Kisumu Sugar Belt Union chairperson Zedekiah Okene asked why reforms meant to help farmers keep being disrupted. Tinderet farmer David Rop urged the State to prioritise struggling cooperatives.

Committee's position

Committee chair John Mutunga has previously defended the reform, arguing that KADCO would end chronic underfunding of agriculture by pooling the resources of existing agencies. The committee will consider the views from the sugar belt before it reports to the House.

Photos: The Eastleigh Voice (cane loading); Jorge Lascar via Wikimedia Commons (CC BY-SA 2.0, Parliament Buildings). Thumbnail design: HAMASTA MEDIA.