Rai-owned West Kenya Sugar market share grows to 30pc

West Kenya Sugar has extended its market share lead as the Rai family-owned firm widens the pie to control more than a quarter of total production in the country in the nine months to September.

Data from the Sugar Directorate indicates the company has grown its market share to 30 percent in the review period from 22.6 percent in the corresponding period last year.

The Kabras sugar maker saw its production shoot to 98,793 tonnes between January and September, against 83,116 in corresponding period last year, according to the latest data from the regulator.

The miller widened the gap with rival Butali Sugar that has now sunk to third position in production with 44,313 tonnes of sugar after being overtaken by Sukari factory, which came in second at 53,573 tonnes.

Private millers led the pack of the highest performers with former market leader Mumias Sugar Company #ticker:MSC remaining shut for a year now.

Mumias, majority-owned by the government and for a long time Kenya’s largest miller, did not produce in the review period.

State-owned Nzoia Sugar Company emerged the best among the five government millers with production of 12,591 tonnes followed by South Nyanza Sugar Company (10,912 tonnes), Muhoroni (9,276 tonnes) and Chemelil (2,863 tonnes).

Most of the State-owned companies have been performing dismally due to lack of sufficient capital, ageing machinery, mismanagement and political interference.\

Kenya’s sugar sector has been hit by lack of sufficient cane to mill, a state that has seen the levels of imports enhanced to cover the deficit.

Sugar imports to Kenya in the review period grew by 70 percent compared with similar period last year as the county shipped in the sweetener to stabilise the price.

According to the directorate, sugar imports between January and September stood at 324,055 tonnes compared with 190,084 that was realised in corresponding period last year.

The production of the commodity declined by 6 percent during this period when compared with last year following poor performance in most factories.