The Sugar Development Levy officially came into effect on July 1, 2025, marking a new phase in the government’s plan to boost the sugar sector.
In a public notice issued on Tuesday, July 15, Principal Secretary for the State Department for Agriculture Dr. Kipronoh Ronoh Paul announced that the levy is now payable by all sugar millers.
He said millers will be required to pay 4 per cent of the ex-factory price for locally manufactured sugar and 4 per cent of the cost, insurance, and freight (CIF) value for each consignment of imported sugar.
“The levy shall be remitted by the tenth day of the month following the month in which domestic sugar is sold or imported,” said Dr. Ronoh.
He also confirmed that the Kenya Revenue Authority (KRA) has been appointed as the official collection agent. KRA will provide further guidance on how the levy will be collected.
The government says the funds raised will be used to improve infrastructure in the sugar industry, support research, and help sugarcane farmers.
However, some stakeholders have expressed concern that the levy may lead to higher sugar prices for consumers.
The levy was introduced following the gazettement of the Sugar Development Levy Order, 2025, under Section 40 (1) of the Sugar Act, No. 11 of 2024, by Agriculture Cabinet Secretary Mutahi Kagwe.
According to the government, the main aim of the new levy is to create a more efficient system for collecting funds from both local and imported sugar, and to use the money to support and grow the sugar sector. This includes efforts to benefit sugarcane growers and promote sustainable development in the industry.
Last month, the government announced that it would invest Sh4 billion annually through the Sugar Development Levy. About 40 per cent of that amount—roughly Sh2 billion—will go towards cane development programs across the country.
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