President William Ruto has signed the Sugar Bill into law, introducing the Sugar Development Levy and a series of reforms aimed at reviving Kenya’s struggling sugar industry.
The legislation also re-establishes the Kenya Sugar Board and sets up the Kenya Sugar Research and Training Institute.
President Ruto emphasized that these changes will energize the sugar sector and tackle long-standing issues that have plagued the once-thriving industry.
“The enactment of the Sugar Bill sets the right pace for the stimulation of our sugar sector and will address deep-rooted challenges that have for long crippled the once vibrant and profitable industry,” he said.
The Kenya Sugar Board will play a key role in regulating prices, setting industry standards, supporting sugar growers, and facilitating both local and international trade.
The 14-member Board will include representatives from farmers, millers, government agencies, and the Council of County Governors. Additionally, crop inspectors will be appointed to ensure compliance with regulations.
The Sugar Development Levy will be capped at 4% of the value of domestic sugar and the Cost Insurance Freight (CIF) value of imported sugar. The revenue generated from this levy will be allocated to crucial areas:
- 15% for factory development and rehabilitation.
- 15% for infrastructure development in sugarcane-producing regions based on production capacity.
- 10% for the administration of the Kenya Sugar Board.
- 5% for sugarcane farmers’ organizations.
- 40% for cane development.
- 15% for factory rehabilitation.
Cane farmers will benefit from investments in infrastructure, productivity enhancements, and direct support, ensuring the sector’s long-term sustainability.
The Kenya Sugar Research and Training Institute will receive 15% of the development levy to advance research and improve training standards, enhancing the industry’s future competitiveness.
A new five-member Sugar Arbitration Tribunal will also be formed to resolve disputes, including issues related to cane pricing and contract farming, providing a legal framework for fair and efficient conflict resolution.
