CS Kagwe unveils plan to turn sugar factories into power hubs

Cabinet Secretary Mutahi Kagwe has outlined plans to transform Kenya's sugar factories into major electricity producers using bagasse waste. The initiative aims to boost the national grid while creating new revenue for the sector.

At West Valley Sugar Company, the cogeneration system now produces five megawatts of electricity from roughly thirty per cent of available bagasse. If used at full capacity, output could reach fifteen megawatts.

Kagwe said, "West Valley is producing five megawatts of electricity with only a fraction of its bagasse. If the factory operated at full capacity, it could generate up to fifteen megawatts." He urged Energy Cabinet Secretary Opiyo Wandayi to speed up frameworks allowing mills to sell surplus power to the national grid.

Deputy President Kithure Kindiki had earlier stressed the government's focus on agricultural value addition and ethanol production. Kenya is also expanding biofuel output to cut reliance on imported fuel, with sugar production rising twenty-two per cent after factories were leased.

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Prime Minister Abiy Ahmed inaugurates solar energy factories generating 11.3 GW in Hawassa Industrial Park.
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Prime minister Abiy inaugurates energy factories in Hawassa Industrial Park

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Prime Minister Abiy Ahmed (Dr.) inaugurated factories with significant capacity for the energy sector in Hawassa Industrial Park on Miyazya 17, 2018 EC (April 25, 2026). Three solar factories and a supporting gas factory were launched. Together, the solar plants will generate over 11.3 gigawatts of clean power annually.

Agriculture Cabinet Secretary Mutahi Kagwe has unveiled a government plan to raise smallholder tea farmers' earnings from Ksh59 per kilogram in 2022 to Ksh100 by 2027. He announced it in Embu on Thursday during the release of the 2025 Kenya Tea Industry Performance Report. The initiative includes a Ksh3.7 billion concessional loan for factory upgrades.

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Kenya is in advanced discussions with Karpowership to deploy floating power plants and ease nationwide electricity shortages.

The Kenyan government has reduced the minimum sugarcane price from Ksh5,750 to Ksh5,500 per tonne, in a step expected to lower retail sugar prices. Kenya Sugar Board Chief Executive Officer Jude Chesire issued the directive on April 24, 2026. The decision followed extensive consultations to balance farmer incomes, miller viability, and market conditions.

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Tanzanian President Samia Suluhu met Nigerian billionaire Aliko Dangote on Saturday in Dar es Salaam. The talks followed reports that Dangote now prefers to build a large oil refinery in Kenya instead of Tanzania. Suluhu noted Dangote's ongoing cement investments in the Mtwara region.

Energy and Petroleum Minister Opiyo Wandayi announced on Friday June 5, 2026 that Kenya will begin producing crude oil from Turkana County before the end of the year.

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Activist Francis Awino filed a petition at the Milimani High Court on Friday, April 10, 2026, seeking the suspension of Energy Cabinet Secretary Opiyo Wandayi over alleged involvement in the irregular procurement of substandard fuel worth Ksh4.8 billion. Awino wants urgent conservatory orders to bar Wandayi from exercising his powers and to hand over authority on fuel imports to an independent body under court supervision.

 

 

 

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