Sugar Industry In Kenya Essay

CHAPTER ONE

INTRODUCTION

1.1. Background of the problem

About 62% of sugar in the world is produced from sugarcane while sugar beets accounts for 38%, (Wada et al., 2006). Sugarcane is also a source of bio-fuel. According to Litch (2008), Brazil produce ethanol which it exports to other countries such as United States of America, Sweden, Japan, among others.

According to Kenya sugar industry strategic plan 2010-2014, the sugar industry is a major contributor to the agricultural sector which is the mainstay of the economy and supports livelihoods of at least 25% of the Kenyan population. The subsector which accounts for about 15% of the agricultural GDP, is the dominant employer and source of livelihoods for most households in Western Kenya comprising Nyanza, Rift Valley and Western Provinces not forgetting many other countries in

This makes the farmers to suffer financial problems which contribute to their withdrawal from sugarcane farming.

According to Kenya sugar industry strategic plan 2010-2014, consumption of sugar in Kenya outstripped its production between the years 1984-2008. Although the production rose from 368,970 tonnes in 1984 to 520,000 tonnes in 2008, its consumption also increased leaving Kenya a net importer of sugar with imports rising from 4,000 tonnes to 220,000 tonnes during the period. The deficit is made by importing from Common Market for Eastern and Southern Africa (COMESA) and other sugar producing countries like Brazil, United Kingdom and Mexico.

Although the above studies have been done in different places and show that there are a number of challenges that face sugarcane farming, there is a need to establish whether there are factors influencing the decrease of the quantity of sugarcane supplied to Nzoia Sugar Company in Kanduyi sub-county,