The Kenyan government has recently reversed its ban on the export of molasses, initially imposed in February last year, following a verification exercise that indicated an excess supply among sugar millers. This decision, communicated by Jude Chesire, the acting director of the Sugar Directorate, aims to resume molasses exports for a 45-day period starting February 6, 2024. The suspension had been enforced to mitigate a shortage for local distillers, as a substantial quantity of molasses, a key component in spirit production, was being diverted to foreign markets. Chesire's announcement, which was shared with relevant authorities including the Kenya Revenue Authority and the Kenya Trade Network Agency, also emphasized the importance of prioritizing the needs of local distillers and farmers.
Despite this development, local alcohol producers are expressing concerns. Mohan Galot, chairman of London Distillers, one of Kenya's major distillers, has criticized the lifting of the ban, arguing that it will adversely affect their operations due to the ongoing scarcity and high cost of molasses. This sentiment is echoed by others in the industry, such as the Agro-Chemical and Food Company Limited (ACFC), which had to halt operations because of the molasses shortage. The move to lift the ban thus raises questions about its impact on local distilleries, including other players like Kibos, a sugar miller based in Kisumu.
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