BY PHUMELELE GAMEDZE (INTERN)
MBABANE – Eswatini’s sugar industry is preparing to navigate fresh market challenges after Kenya proposed a sharp increase in excise duty on imported sugar under its Finance Bill, 2026, a move expected to reduce Eswatini’s exports to the East African nation by about 80 000 metric tonnes this year.
Speaking on MarketView, Eswatini Sugar Chief Executive Officer Banele Nyamane explained that the proposed tax would significantly affect one of Eswatini’s key regional export destinations. Kenya has become an important market for Eswatini sugar in recent years, helping diversify exports beyond the country’s traditional destinations.
The proposed increase in excise duty from KSh7 500 to KSh40 000 per tonne on imported sugar has already prompted exporters to suspend planned shipments as uncertainty grows over the implementation of the new tax measures.
While the anticipated reduction in exports could translate into lower foreign exchange earnings and increased pressure on the industry, Nyamane stressed that Eswatini’s sugar sector remains resilient and is actively exploring alternative markets to cushion the impact.
The industry exports more than 70 percent of the country’s annual sugar production, making market diversification essential to sustaining revenues and supporting thousands of jobs across the value chain.
Nyamane indicated that the industry continues to work closely with government and trading partners to identify new opportunities within Africa and beyond, while maintaining competitiveness in existing premium markets.
Industry observers note that if Kenya’s domestic sugar production improves, the tax could remain in place for some time. However, should local production decline later in the year, there is a possibility that Kenyan authorities could review the policy, although any adjustment would likely take several months.
The Eswatini Cane Growers Association also expressed concern over the proposed tax measures. Chief Executive Officer Dr. Sipho Nkambule said growers are already battling rising production costs, including fuel, fertiliser and electricity, making access to profitable export markets more important than ever.
Despite the immediate uncertainty, the industry remains optimistic. Recent sector discussions have highlighted value addition, ethanol production, renewable energy, specialty sugars and expanding into new regional and international markets as key strategies for long term growth and resilience.
As global trade conditions continue to evolve, Eswatini’s sugar industry believes innovation, diversification and stronger regional partnerships will be critical in safeguarding one of the country’s largest export industries while continuing to contribute to economic growth and rural livelihoods.
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