Kabras sugar maker market share hits 30 percent on high sales

West Kenya Sugar Company has solidified its market share to command 30 percent of the total sales over the last four months.

Data from the Sugar Directorate indicates the company marginally raised sales to 57,317 tonnes of sugar in the review period out of the total production of 193,532 tonnes.

The Kabras brand maker, owned by Jaswant Singh Rai, has maintained the dominant position in the sugar market. The firm attributes its success to timely payments to farmers and installation of new machines.

The miller widened the gap further with its rival — Butali Sugar — which emerged second having sold 31,108 tonnes of sugar followed by Kibos at 27,732 and Sukari at 27,606. Mauritian Transmara Sugar Company, which was at position two in the previous review, sunk to number four with a total sales of 25,122 tonnes.

Private millers outperformed State-owned ones with the directorate attributing the trend to efficiency in production.

“All the government-owned mills reported decreased production due to limited cane supply and inefficiencies,” it said.

State-owned Nzoia Sugar was the best among the government millers recording sales of 3,832 tonnes followed by Muhoroni at 3,784 and Chemelil coming last at 1,442 tonnes.

Inadequate cane has hit the sugar sector, which has seen the levels of imports enhanced to cover for the deficit.

The imports in the review period grew by 23 percent compared to the same period last year, following scarcity of the commodity that compelled the regulator to step up imports.

According to the Sugar Directorate, imports of the commodity between January and April stood at 184,677 tonnes compared to 150,302.

The consumer price of sugar recently dropped to Sh210 for a two-kilo packet occasioned by an increase of cheap sugar in the market.

A two-kilo packet of branded sugar has now dropped from a high Sh230 in February to a low of Sh210 for the same quantity as the market responds to an increase of cheap sugar in the market.