Category: Economy&Finance

Kenya’s domestic sugar production declined by 24.5 per cent in 2025, according to figures from the Kenya National Bureau of Statistics (KNBS).

The production figure fell to 7.04 from 9.33 in 2024, reversing the previous year’s strong performance. The chart shows production stood at 5.48 in 2023, after rising from 6.89 in 2020 to 8.59 in 2022.

The figures highlight a significant decline following the 2024 peak, raising questions about the factors behind the latest drop in domestic sugar output.

Kenya and the Netherlands have launched two new programmes worth a combined €2.74 million (approximately Sh410 million) to improve the business environment, address investment barriers and strengthen trade relations between the two countries.

The initiatives were unveiled during the Sustainable Trade Roundtable held in Nairobi on Tuesday, November 3, bringing together government officials, Dutch businesses, industry associations and other stakeholders to discuss challenges facing businesses and opportunities for deeper economic cooperation.

The programmes will run for three years and focus on accelerating business climate reforms, strengthening regulatory systems and creating a more favourable environment for private sector investment.

The first initiative, valued at €1.74 million, will be implemented by Financial Sector Deepening Kenya (FSD Kenya), the Business Registration Service (BRS) and the Competition Authority of Kenya.

It will focus on accelerating business climate reforms through digital regulatory services, enhanced financial transparency and more competitive public procurement.

The second programme, valued at €1 million, will be implemented by Genesis Analytics, Aaereton Blu and KenInvest.

It will support the development of pro-investment policies and establish an early-warning observatory through a dedicated Kenya Investment Delivery Unit.

The unit will identify emerging regulatory challenges and address rising business costs affecting investors.

Speaking during the roundtable, Netherlands Vice Minister for International Development Pascalle Grotenhuis described Kenya as a strategic partner and one of three priority countries in Sub-Saharan Africa, alongside South Africa and Ghana.

“Kenya is a strategic partner for the Netherlands and we see significant opportunities to deepen our economic cooperation,” she said.

Grotenhuis said bringing together government and business would help identify practical solutions to improve the business environment, unlock investment opportunities and strengthen trade relations.

She identified agriculture and food systems, water, health, agro-logistics, renewable energy, digitalisation and climate-resilient infrastructure as key areas of cooperation.

She also highlighted the potential of strategic economic corridors, particularly the Northern Corridor, in strengthening Kenya's position as a regional trade gateway.

Director of Agriculture in the State Department for Agriculture Evelyn Heyi said closer cooperation between the two countries was important in facilitating trade and expanding market access for Kenyan agricultural products.

“Strengthening this partnership requires continued collaboration between our governments to streamline regulatory frameworks, address trade barriers and create a more predictable environment for businesses,” Heyi said.

The roundtable also provided Dutch companies operating in Kenya with an opportunity to highlight challenges affecting their operations.

Among the concerns raised were high air freight costs, delayed VAT refunds, double taxation within the East African Community and unpredictable regulatory and policy changes.

Participants called for sustained government engagement and stronger public-private collaboration to address the challenges, improve investor confidence and create a more competitive business environment.

The two programmes are expected to strengthen institutional capacity, address regulatory barriers and support private sector-led investment and growth.

The engagement builds on longstanding economic and diplomatic relations between Kenya and the Netherlands, including the State Visit in March 2025 and the establishment of the Kenya-Netherlands Joint Trade Committee.

The committee provides a structured platform for economic dialogue and cooperation between the two governments.

The Kenya Tea Development Agency (KTDA) Holdings board has elected James Githinji Mwangi as its new chairman, replacing Enos Njeru following a fresh board election.

In a leadership change announced on Tuesday, November 3, KTDA said Samson Mosonik Menjo would retain his position as vice chairman.

The agency did not disclose the circumstances surrounding Njeru’s exit or provide details of the board election that produced Mwangi.

In a statement, KTDA said the leadership change would not disrupt its operations, assuring tea farmers and other stakeholders of continuity as the agency continues to oversee the interests of smallholder tea growers.

“KTDA reassures all stakeholders that business operations will proceed seamlessly, with an unwavering focus on driving efficiency and promoting the best interests of tea farmers,” the agency said.

Mwangi takes over at a critical institution in the country’s tea industry, which plays a central role in supporting the over 700, 000 smallholder farmers through tea processing, factory management and the marketing of their produce.

The agency works with tea factories across the country, making its leadership influential in decisions affecting farmers’ earnings, operational efficiency and the competitiveness of Kenyan tea in international markets.

The latest change comes less than eight months after Njeru returned to the chairmanship in March 2026.

Njeru was elected chairman on March 4, 2026, replacing Chege Kirundi, who had taken over the position in January 2025.

Kirundi had replaced Njeru following an earlier board election that triggered a dispute over the leadership.

Njeru had initially been appointed chairman in July 2023 following the resignation of David Ichoho.

He was subsequently re-elected in August 2024 for another three-year term before Kirundi’s election altered the leadership in January 2025.

The changes have highlighted the contestation surrounding leadership of the agency, which represents the interests of smallholder tea farmers and oversees a significant part of the country’s tea production and marketing system.

In March, when Njeru returned to the position, KTDA said the board remained committed to strengthening corporate governance, protecting farmers’ value and positioning Kenyan tea competitively in regional and international markets.

The agency has also been pursuing reforms aimed at improving governance, compliance and accountability across its operations.

For farmers, changes at the top of KTDA are closely watched because board leadership influences the direction of the agency and its engagement with tea factories and growers on matters affecting the sector.

Mwangi’s immediate task will be to steer the board while maintaining confidence among farmers and other stakeholders during the transition.

KTDA did not announce any changes to its wider board structure or outline new policy priorities under Mwangi’s chairmanship.

The agency reiterated that its focus remained on efficiency and safeguarding farmers’ interests, signalling continuity in its stated priorities despite the change at the top.

The new chairman takes office as the tea sector continues to face pressure to improve returns to growers, strengthen governance and maintain Kenya’s position in the global tea market.