NAIROBI – A new 4% Sugar Development Levy has officially come into effect, targeting millers and sugar importers under the provisions of the Sugar Act, 2022. The levy is expected to generate funds to revive the ailing sugar sector.
The Ministry of Agriculture and Livestock Development confirmed that the Kenya Revenue Authority (KRA) will handle the levy collection. According to Agriculture Principal Secretary Dr. Kipronoh Ronoh, the payment schedule is monthly.
“The levy shall be remitted by the tenth day of the month following the sale of local sugar or the importation of foreign sugar,” said Dr. Ronoh in a statement.
The charge applies at 4% of the ex-factory price for sugar sold locally and 4% of the cost, insurance, and freight (CIF) value for each sugar consignment brought into the country.
Revenue collected from the levy will be split across key areas of the sugar industry. Forty percent is earmarked for cane development, with 15% allocated to the rehabilitation of government-owned sugar factories that have suffered years of neglect.
Another 15% will be distributed to sugarcane-producing regions, based on their output, to support infrastructure development and maintenance.
The Kenya Sugar Board will receive 10% of the funds to manage regulatory and administrative responsibilities. Sugarcane farmer associations will be allocated 5%.
In a bid to strengthen research and training, 15% of the collected funds will go to the Kenya Sugar Research Training Institute.
Dr. Ronoh noted that KRA will issue specific guidelines on the collection process.
The levy marks a major step in the government’s broader strategy to stabilize the sugar industry, which has struggled with outdated infrastructure, low production levels, and rising imports. Officials believe the new funding model could help reverse years of decline and support long-term sustainability.
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