CS Kagwe: Sugar factories to power Kenya amid push for generating electricity and ethanol

Kenya is accelerating plans to transform the sugar industry into a major power and biofuel producer, as the government pushes for sugar factories to supply power to the national grid.

Speaking during a visit to West Valley Sugar Company, Agriculture Cabinet Secretary (CS) Mutahi Kagwe said the future of the sector lies in maximizing all sugarcane components to produce sugar, electricity, ethanol and other industrial products.

This comes amid the need to expand ethanol production to reduce the country's fuel import bill and strengthen energy security.

The CS revealed that the government is actively engaging the Ministry of Energy to facilitate the purchase of electricity generated by sugar factories, describing cogeneration from bagasse — a by-product of sugar processing — as an untapped opportunity that could significantly contribute to Kenya's energy mix.

Citing an example of West Valley Sugar Company, Kagwe noted that the factory is already generating five megawatts of electricity while utilizing only about 30 percent of its available bagasse.

"West Valley is producing five megawatts of electricity with only a fraction of its bagasse. If the factory operated at full capacity, it could generate up to 15 megawatts. This is a fantastic opportunity not only for Kenya but for the region. Our neighbours are already doing this and there is no reason we should be left behind," said CS Kagwe.

He called on Energy Cabinet Secretary Opiyo Wandayi to expedite frameworks that would allow sugar factories to sell surplus electricity to the national grid, saying the partnership between the agriculture and energy sectors could help reduce the country's reliance on imported energy while creating new revenue streams for farmers and millers.

CS Kagwe announced that the Government is preparing to support an aggressive expansion of ethanol production as part of a broader strategy to reduce fuel imports and save foreign exchange.

He added that Kenya must urgently diversify its fuel sources by embracing ethanol-blending programmes to avoid global shocks like the Middle East crisis.

"We have seen what has happened in the Middle East. If we blend ethanol with fuel, we will save foreign exchange and significantly reduce our dependence on imported petroleum products. Going the ethanol way is what this Government will support and we will provide all incentives necessary to make it happen," CS Kagwe said.

West Valley Sugar Company, a flagship investment under the Kipchimchim Group, currently operates ethanol production facilities with a daily capacity of approximately 20,000 litres.

CS Kagwe said the leasing of state-owned sugar factories to private operators has already begun yielding positive results, noting that sugar production has grown by approximately 22 percent over the last year.

"Last year we completed the leasing of sugar factories. When you combine private sector efficiency with Government support through subsidized fertilizer and farmer support programmes, we are now witnessing a 22 percent increase in sugar production," he said.

The CS assured workers in the sugar industry that all outstanding salary arrears inherited from previously distressed state-owned mills would be settled as part of the ongoing sector reforms.