Kabras Sugar manufacturer extends market share to 31 percent

The miller saw its sales shoot to 15,121 tonnes out of a total of 49,335 tonnes sold in January. FILE PHOTO | NMG

What you need to know:

  • West Kenya Company has grown its market share to 31 percent in the review period from 20 percent in corresponding time last year.
  • The makers of the Kabras brand, saw its sales shoot to 15,121 tonnes out of a total of 49,335 tonnes sold in January, against 10,211 that was realised last year, according to the regulator.

West Kenya Sugar Company extended its market share lead as the Kabras-based firm widened the pie to control a third of the total sales in the country last month.

Data from the Sugar Directorate indicates that West Kenya Company has grown its market share to 31 percent in the review period from 20 percent in corresponding time last year.

The makers of the Kabras brand, saw its sales shoot to 15,121 tonnes out of a total of 49,335 tonnes sold in January, against 10,211 that was realised last year, according to the regulator.

Jaswant Rai, the chairman of the Rai group told the Business Daily last month that their production has been boosted by timely payments to farmers and investment in new machines that have created efficiency.

“When you pay farmers on time and offer them a good price per tonne, then you will supply enough cane for processing,” said Mr Rai. The miller is paying Sh3,900 per tonne at a time other processors like Busia Sugar have cut its cost per tonne to Sh3,700.

The miller widened the gap further with its bitter rival Butali Sugar that emerged number two in sales, having sold 7,709 tonnes of sugar after it overtook Transmara (7,703 tonnes) and Sukari Industries, which had for some time maintained position two and three.

State-owned Muhoroni Company was the best among the State millers, recording sales of 1,388 tonnes followed by Sony Nyanza at 544 tonnes. Nzoia and Chemelil did not sell during the period.

Sugar sector has been hit by lack of cane, raising import levels to cover the deficit.

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Note: The results are not exact but very close to the actual.