Rai-owned West Kenya Sugar market share increases to 30%

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Rai-owned West Kenya Sugar market share increases to 30%


Jaswan Rai. PHOTO FILE | NMG

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Summary

  • The Kabras sugar company has widened the cake to control more than a quarter of the country’s total production.
  • The miller widened the gap with his rival Butali Sugar which has now fallen to third position in production with 44,313 tonnes of sugar after being overtaken by the Sukari plant, which came in second with 53,573 tonnes .
  • Mumias, majority government-owned and for a long time Kenya’s largest miller, did not produce during the reporting period.

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

Data from the Sugar Directorate indicates that the company increased its market share to 30 percent during the review period, compared to 22.6 percent during the corresponding period last year.

The Kabras sugar plant saw its production climb to 98,793 tonnes between January and September, against 83,116 at the same period last year, according to the latest data from the regulator.

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

Private millers were ahead of the top performing pack, with former market leader Mumias Sugar Company #ticker: MSC remaining closed for a year now.

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

State-owned Nzoia Sugar Company established itself among the five government flour mills with an output of 12,591 tonnes, followed by South Nyanza Sugar Company (10,912 tonnes), Muhoroni (9,276 tonnes) and Chemelil ( 2,863 tons).

Most state-owned enterprises have performed dismally due to lack of sufficient capital, aging machinery, mismanagement and political interference.

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

Kenya’s sugar imports during the review period increased by 70 percent compared to the same period last year as the country shipped the sweetener to stabilize the price.

According to management, sugar imports between January and September amounted to 324,055 tonnes compared to 190,084 which were achieved during the corresponding period last year.

Production of this product was down 6 percent during this period compared to last year as a result of poor performance at most factories.

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