Mbabane – Eswatini’s sugar industry is facing a potential E160 million loss in export revenue after Kenya introduced a sharp increase in excise duty on imported sugar, forcing the immediate suspension of shipments to one of the country’s key regional markets.
Speaking on Eswatini TV’s Market View programme, Eswatini Sugar Association (ESA) Chief Executive Officer Banele Nyamane said the proposed measure under Kenya’s Finance Bill 2026 had compelled the industry to halt exports that would not reach the Port of Mombasa before the new tax took effect on 1 July, leaving about 80,000 tonnes of sugar originally destined for Kenya in need of alternative markets.
Nyamane said the industry had no choice but to cancel shipments as the new levy makes Eswatini sugar significantly more expensive in Kenya.
“The impact for now is that our revenues are expected to drop by close to E160 million. We now have to redirect or find alternative markets for the sugar that was destined for Kenya,” he said.
According to reports, Kenya has increased the import duty on sugar from about E954.87 to E5,092.64 per metric tonne, a move aimed at protecting its domestic producers but one that threatens Eswatini’s regional export trade.
Nyamane said approximately 120,000 tonnes of sugar had been earmarked for the Kenyan market this season, with some volumes already shipped before the tax came into effect. However, around 80,000 tonnes must now either be stored or redirected.
To cushion the impact, he said the industry is targeting the European market, where adverse weather conditions, including recent heatwaves, are expected to reduce sugar production and create supply shortages.
“We’ll be looking at trying to increase our sales into the European market because we anticipate there will be shortages as a result of the excessive heatwaves experienced there,” he said.
The disruption is also expected to affect thousands of cane growers whose incomes depend on sugar exports.
On the same note, Eswatini Cane Growers Association Chief Executive Office said the decision by Kenya would have an adverse effect on growers, who have limited options to respond to the situation.
“The effect is going to be adverse and unfortunately there is very little growers can do to change that. We can only look to the Eswatini Sugar Association to mitigate the situation,” he said.
The association, which represents about 500 farmers, has urged growers to focus on improving productivity by increasing both the quality and quantity of their cane yields to help cushion the impact of the market disruption.
The latest setback comes just weeks after the industry warned that rising global oil prices linked to tensions in the Middle East had already increased export costs and placed pressure on profitability.
Despite these emerging challenges, the sugar industry remains one of Eswatini’s strongest economic pillars. According to its latest annual report, industry earnings rose to E7.7 billion during the 2024/25 financial year from E7.4 billion the previous year, while the sector continues to contribute between 5 and 6.3 percent of the country’s Gross Domestic Product.
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