Kenya: Cane producing regions to get 15pc of key sugar levy in new law

Published 2024년 11월 1일

Tridge summary

President William Ruto has signed the Sugar Act 2022, which allocates 15% of the Sugar Development Levy, collected from local and imported sugar, to sugarcane producing regions for infrastructural development. The act also establishes the Sugar Development Levy, capped at 4% of the value of domestic sugar and 4% of the CIF value of imported sugar, and creates the Kenya Sugar Board to regulate, develop, and promote the sugar industry. The board will be composed of 14 members, representing various stakeholders, and will serve a renewable three-year term. The act aims to address challenges in the sugar sector since 2013, such as increased production costs, decreased acreage for sugar cultivation, lack of markets, uncontrolled imports and exports, poor management, and lack of research and cane development initiatives.

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Original content

The new Sugar Act 2022 which has been assented to by President William Ruto on Friday will see sugarcane producing regions allocated 15pc of the Sugar Development Levy collected from local and imported sugar. The funds to be allocated on a pro-rate basis based on production capacity will go towards infrastructural development and maintenance of sugar sector in the regions. The new act prescribes the establishment of the Sugar Development Levy which is to be levied on domestic sugar and retained in a Sugar Development Fund that is administered by the Kenya Sugar Board. The Levy is capped at 4pc of the value of domestic sugar and 4pc of the Cost Insurance Freight (CIF) value of imported sugar. Additionally, 15pc of the levy collected has been allocated for factory development and rehabilitation, another 15pc towards research by the Kenya Sugar Research and Training Institute and 40pc towards cane development and productivity enhancement. The Kenya Sugar Board which has been ...

Source: Kenya Broadcasting Cooperation