Ruto Signs Sugar Bill 2022, Introduces 4% Sugar Levy
President William Ruto has signed the Sugar Bill 2022 into law, marking a critical step in revitalizing Kenya’s struggling sugar industry. The new legislation introduces significant structural changes, including a 4% Sugar Development Levy to boost funding for the sector.
“This law is designed to strengthen the sugar industry by boosting production, enhancing milling efficiency, and promoting value addition,” stated President Ruto during the signing ceremony.
The 4% Sugar Development Levy
The law establishes the Kenya Sugar Board and the Kenya Sugar Research and Training Institute to provide regulatory oversight and foster innovation. Funding for these institutions will be sourced from the National Assembly and the newly introduced levy, capped at 4% of the domestic sugar value and the cost, insurance, and freight (CIF) value of imported sugar.
The levy allocations are strategically designed: 15% for factory development, 15% for research, 40% for improving cane productivity, 15% for infrastructure in sugarcane-producing regions, 10% for board administration, and 5% for sugarcane farmers’ organizations.
Reforms for a Thriving Industry
A key highlight of the law is the establishment of the Kenya Sugar Research and Training Institute. With a nine-member board led by an appointee of the Cabinet Secretary for Agriculture, the institute aims to promote research and access to cutting-edge sugar technologies.
In addition, a five-member Sugar Arbitration Tribunal will resolve disputes within 90 days, with an option for appeals in higher courts. The tribunal will be chaired by a qualified judge, ensuring swift and fair resolutions.
Sugar Prices Drop
As reforms take shape, sugar production has already increased significantly. Between January and September, Kenya produced 615,499 metric tonnes of sugar, up from 374,119 metric tonnes in the same period last year. Retail sugar prices have also eased, with September prices averaging KSh 136 per kilo, down from KSh 141 in August.
With the implementation of this law, President Ruto expressed optimism, saying, “These measures are vital to securing a prosperous future for our sugar industry and farmers.”
In Other News: No One Expected This: Uhuru-Ruto Handshake On The Horizon
Ruto Signs Sugar Bill 2022, Introduces 4% Sugar Levy
