Authorities are facing scrutiny following revelations that a multibillion-shilling consignment of industrial sugar may have been diverted into Kenya’s household market, raising concerns over public health and regulatory oversight.
A report by The Standard on Friday alleges that part of a Sh3 billion shipment intended for industrial use was repackaged and sold for domestic consumption by Mombasa Sugar Refinery and Kibos Sugar Company.
Documents seen by the newspaper indicate that the sugar was imported as industrial raw material but later diverted into packaging lines meant for table sugar, before entering retail markets.
The shipments are linked to Mombasa Sugar Refinery and Kibos Sugar Company, firms that are now under public scrutiny as questions emerge over compliance with import classifications and tax obligations.
Insiders quoted in the report claim the scheme has benefited from protection by senior civil servants, allegedly allowing the product to circulate in the market with minimal regulatory intervention.
The allegations have raised concern among stakeholders over possible health risks associated with industrial-grade sugar entering food channels, as well as significant losses in government tax revenue.
Regulators have yet to issue an official statement on the matter as calls grow for tighter monitoring of sugar imports and distribution channels across the country.
Consumer protection groups have called on the Kenya Bureau of Standards and the Kenya Revenue Authority to urgently investigate the alleged diversion of industrial sugar into the consumer market.
They argue that weak enforcement mechanisms may have enabled illicit actors to exploit import classifications, undermining both food safety standards and fair taxation in the sugar sector.
Calls are also growing for Parliament to review sugar import regulations and strengthen oversight across the supply chain to prevent similar incidents in the future.
The matter is expected to fuel debate on corruption and regulatory accountability in key sectors this week.