NAIROBI — The Kenya Revenue Authority (KRA) will now collect sugar levies from millers and importers, following a new directive by the Ministry of Agriculture and Livestock Development.
The move comes after the implementation of the Sugar Development Levy, which took effect on July 1. Under the levy, millers and importers are required to remit 4% of the sale or import value each month to support the recovery of Kenya’s struggling sugar industry.
Agriculture Cabinet Secretary Mutahi Kagwe announced the change on Monday. The KRA is expected to release specific instructions on how the levy will be enforced.
A public notice from the Agriculture State Department clarified that payments must be made by the 10th of every month after sales or imports occur. The funds will be channeled toward programs aimed at improving productivity, reducing debt among state-owned sugar firms, and protecting the sector from import-driven disruptions.
The sugar levy is part of the government’s wider plan to stabilize the local sugar market and inject new funding into cane farming and factory operations.
“The levy provides a direct financing mechanism to support industry renewal,” the statement read.
Kenya’s sugar industry has faced decades of underinvestment, inefficiency, and stiff competition from low-cost imports. The new revenue stream is intended to give the sector financial stability while ensuring compliance through KRA oversight.
The Agriculture Ministry has pledged strict monitoring of compliance by millers and importers. The directive is expected to tighten enforcement and improve transparency in sugar revenue collection.
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