Potentials of the Kenya sugar industry.

Abstract

The Kenya sugar industry is at a crossroads. Over the last decade, there has been a general decline in the performance of the industry at an increasing rate. Within this period the country has been forced to increasingly import large amounts of sugar in order to satisfy domestic demand. The declining performance of the industry has been attributed to many factors including: the devaluation of the Kenya shilling; lack of proper applied research; inappropriate selection of machinery and equipment; technical and financial mismanagement of the operational factories. In spite of the numerous problems facing the industry in Kenya, there exists great potential. The contribution of the industry to the economy is significant, and areas where the factories are situated are characterized by better infrastructure, better schools and health facilities, and generally better living standards, as compared to other rural areas. This paper looks at some of the major problems that have been affecting the sugar industry's performance. It also explores the potential of the industry and suggests ways of reversing its declining performance.