Major growing zones are facing a cane shortage following a severe drought, with the Sugar Directorate estimating a shortage of 1.9 million tonnes at the end of June.
AFA expects the situation to normalise in the next 12 months and has allowed millers to import 150,000 tonnes of sugar to cover for the deficit.
Sugar production in the first six months of the year dropped 40 per cent compared with the same period in 2016, according to the directorate.
Data from the directory indicates that production between January and June stood at 202,023 tonnes down from 337,826 realised in the same period last year.
The low production forced the directorate to increase imports to contain soaring sugar prices which hit a record Sh400 per two kilogramme packet. The price has since stabilised to Sh250 per two kilo packet.