Kagwe Backs Plan to Turn Sugar Mills Into Power and Ethanol Hubs

Agriculture Cabinet Secretary Mutahi Kagwe has thrown his weight behind a government strategy to transform Kenya's sugar factories into electricity generation and biofuel production hubs, following a site visit to West Valley Sugar Company in Kericho in June 2026. Kagwe highlighted bagasse cogeneration as a chronically underutilised resource.

Kagwe Champions Cogeneration and Ethanol Diversification at West Valley

West Valley Sugar Company currently generates 5 megawatts of electricity from bagasse cogeneration but could reach 15 megawatts with optimised equipment. The factory also operates an ethanol distillation plant with a current output of 20,000 litres per day. Kagwe announced that his Ministry would formally engage the Ministry of Energy and Petroleum to develop power purchase agreements between cogeneration-capable sugar factories and KPLC. He called on operators of the newly leased state mills to develop their own cogeneration and ethanol expansion plans, describing West Valley as a model for the entire sugar sector.

What Comes Next

A joint technical working group between the Ministry of Agriculture and the Ministry of Energy and Petroleum is expected to be established to develop a standardised power purchase agreement framework suitable for Kenya's sugar belt cogeneration facilities.