- The new law will create the Kenya Sugar Board and the Kenya Sugar Research and Training Institute, to revitalise the sugar sector
- It will also facilitate the implementation of the Sugar Development Levy, which is capped at 4% of domestic sugar value
- The Kenya Sugar Research and Training Institute will be managed by a nine-member board led by a Cabinet secretary appointee
Ekwutosblog journalist Japhet Ruto has over eight years of experience in financial, business, and technology reporting and offers profound insights into Kenyan and global economic trends.
Which sugar levy will Kenyans pay?
The new law will create the Kenya Sugar Board and the Kenya Sugar Research and Training Institute, to revitalise the sugar sector.
It will also facilitate the implementation of the Sugar Development Levy, which is capped at 4%.
“Structured funding for the Kenya Sugar Board will come from National Assembly allocations and a Sugar Development Levy, capped at 4% of domestic sugar value and CIF of imported sugar.
Allocations include 15% for factory development, 15% for research, 40% for cane productivity, 15% for infrastructure in sugarcane-producing regions, 10% for Board administration, and 5% for sugarcane farmers’ organisations,” the Presidency stated.
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Why Ruto signed Sugar Bill 2022 into law
According to Ruto, the measures will strengthen the industry by boosting production, enhancing milling efficiency, aligning capacity with cane supply, promoting value addition, and providing critical funding.
The Kenya Sugar Research and Training Institute, with a nine-member board led by a Cabinet secretary appointee, will promote research, innovation, and access to sugar technologies.
A five-member Sugar Arbitration Tribunal will be formed to settle sector issues within 90 days, with the possibility of appeals to the High Court and Court of Appeal. A judge with the necessary qualifications will chair the tribunal.
What are sugar prices in Kenya?
The Sugar Directorate revealed that sugar production between January and September increased to 615,499 metric tonnes (MT), compared to 374,119 MT recorded last year.
Wholesale sugar prices dropped to an average of KSh 5,367 per 50kg bag, down 1% from KSh 5,424 per 50kg bag in August 2024.
Retail sugar prices in September averaged KSh 136 per kilo, down from KSh 141 in August as inflation eased.
