Kaliro factory to sweeten sugar sector

KALIRO - The revamped Kaliro Sugar Factory is set to stimulate Uganda’s sugar sector by increasing local production and improving competitiveness, Modern Group, the new owners of the factory, have announced.

President Yoweri Museveni is expected to officially launch the upgraded factory on August 22, 2025, in Kaliro district, an event described as a major milestone in Uganda’s industrialisation agenda.

Modern Group owner, Ashish Monpara, told New Vision Online ahead of the launch that the factory has undergone extensive transformation following an investment of about $100m (approximately shillings 356 billion) in both plant revamping and agricultural development.

According to Monpara, the factory now has a crushing capacity of 2,500 tonnes per day, which translates into an annual production of between 70,000 and 80,000 tonnes of sugar.

“Kaliro Sugar Factory was never in the plan to acquire, but we saw an opportunity when His Excellency told us that there is security, and he believed in my team and myself that we would be able to take over and turn around the whole company,” Monpara said.

He noted that the development would not only raise sugar output but also create employment opportunities. At present, the factory directly employs 1,500 people and another 3,000 indirectly, while about 3,000 outgrowers are benefiting from supplying sugarcane.

Expansion plans are already underway, with Monpara revealing that capacity is expected to triple to 7,500 tons per day within the next two years, supported by an additional $100m investment.

Finance Minister Matia Kasaija, Trade Minister Francis Mwebesa, and State Minister for Investment Evelyn Anite are expected to attend the launch ceremony.

Monpara added that the revival of the factory comes as a welcome relief to sugarcane farmers in the Busoga subregion, who have long grappled with low cane prices.

Ashish Monpara

According to Anite, the relaunch of the Kaliro Sugar Factory is clear evidence of the government’s commitment to industrialisation and economic transformation.

“With its increased capacity and production, the factory is poised to play a significant role in the country’s sugar industry, providing employment opportunities and contributing to the national economy,” Anite said in a statement.

Uganda’s sugar sector has experienced mixed fortunes in recent years, with growth undermined by duty-free imports from other East African Community (EAC) partner states, including Rwanda, Tanzania and Kenya. The influx of imported sugar has depressed prices and exposed local millers and farmers to heavy losses.

Modern Group Investments

Modern Group, the new owners of Kaliro Sugar Factory, already have a strong presence in Uganda’s agro-processing and manufacturing sectors. The group owns Kidera Sugar Limited and Kiryandongo Crest Sugar Factory, both of which produce refined sugar for local and export markets.

Beyond sugar, the group has diversified into several industries. Modern Tiles manufactures a wide range of ceramic products including floor, bathroom, kitchen, living room and outdoor tiles. Nile Aluminium Limited produces aluminium products, while Modern Group also runs an organic fertiliser plant, and Luxury Beverages, which makes raw neutral spirit, dry gin and other drinks.

Its steel and metal products division manufactures steel wires, bars, tubes, saucepans, kettles, steel wool, chain links and wire mesh, while Shree Modern Textiles produces fabrics for school uniforms and other textile products such as suits, curtains and bedsheets. Nile Batteries, another subsidiary, manufactures lead-acid automotive batteries.

With the addition of Kaliro Sugar Factory, the group believes it is further consolidating its role as a key player in Uganda’s industrial growth and job creation.