Sugar millers have been given seven days to pay farmers after receiving their sugarcane, under new enforcement measures announced by the Kenya Sugar Board (KSB). In a notice issued on Thursday, August 27, the board warned that millers who fail to meet the seven-day payment period will face sanctions, including interest charges on delayed payments. KSB said the seven-day payment requirement will now be supported by clear sanctions contained in contracts between farmers and millers. The move is intended to strengthen enforcement and reduce delays in payments to sugarcane growers.

Under the new approach, farmers who deliver cane to a miller will be entitled to payment within seven days. Failure by a miller to meet the deadline could result in financial penalties, including interest accruing on the outstanding amount.

KSB Chief Executive Officer Jude Chesire said the board was also taking action against malpractices at weighbridges, which have contributed to losses for farmers when the weight of delivered cane is determined. The measures form part of efforts by the regulator to improve accountability in the sugar industry and protect farmers from practices that reduce value of their produce. Delayed payments have been a longstanding concern among sugarcane growers, who depend on proceeds from cane deliveries to meet household expenses and finance subsequent farming activities. The board’s decision therefore gives millers a defined payment period while introducing consequences for non-compliance.

KSB said the enforcement measures are aimed at ensuring farmers receive payment within a predictable timeframe after delivering their crop. The board also intends to address other points in the supply chain where farmers may lose income, including the weighing of cane. The directive applies to sugar millers purchasing and processing cane from farmers under contractual arrangements.

For growers, the practical implication is that payment should be received within seven days of cane delivery, subject to the terms of the relevant farmer-miller contract. For millers, failure to comply with the contractual payment period could result in additional financial costs through interest and other sanctions provided for in their agreements. The announcement comes as Kenya continues efforts to reform the sugar sector and improve relations between growers and millers. KSB has indicated that enforcement of the payment requirement will form part of a broader effort to strengthen the sugarcane value chain and ensure farmers receive fair and timely returns for their produce.

The board has not indicated that the seven-day period is a new principle; rather, the latest directive strengthens the existing payment requirement by attaching clear contractual consequences to delays.