Nairobi — Agriculture Cabinet Secretary Aden Duale has announced the imposition of a new sugar development levy effective February 1.
According to Duale, the move is aimed at boosting the local sugar industry through revenue generation that will be directed towards supporting the development and sustainability of the sugar sector in Kenya.
The new levy will apply to both domestic and imported sugar.
The Sugar Development Levy Order, 2025, mandates a four percent levy on the value of domestic sugar and four percent on the cost, insurance, and freight (CIF) value of imported sugar.
"There is hereby imposed a levy, as prescribed in Section 40 (1) of the Sugar Act, 2024, at the rate of four per centum of the value for domestic sugar and four per centum of CIF value on imported sugar," read the legal notice in part.
According to the new regulations, sugar millers will be required to remit the levy for domestic sugar directly to the Kenya Sugar Board (KSB) as their agents.
For imported sugar, the Kenya Sugar Board or its authorised agents will be responsible for collecting the levy.
The payments are due by the 10th day of the month following the month in which the levy becomes due.
The introduction of this levy is expected to support the country's sugar industry, which has faced challenges ranging from fluctuating production costs to competition from imported sugar.
The levy will also provide a steady stream of funding for the Kenya Sugar Board to implement development initiatives and policies that aim to strengthen local production and reduce dependency on imports.