Senators Summon CS Kagwe Over Sugar Levy Order

Senators have summoned Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe to explain issues surrounding the newly introduced Sugar Development Levy.

The Senate Committee on Delegated Legislation wants the ministry to clarify details in Legal Notice No. 113 of 2025, which established the levy under Section 40(1) of the Sugar Act, 2024.

Published on June 30, 2025, the Legal Notice outlines that a four per cent levy will be charged on the ex-factory price of locally produced sugar and a similar four per cent on the cost, insurance, and freight (CIF) value of imported sugar.

According to the Order, sugar millers will be responsible for remitting the levy on local sugar, while importers will pay the levy on imported sugar. Payment is due by the 10th day of the month following either the production or importation of the sugar.

However, senators raised concerns over discrepancies in public participation, with the Committee noting differences between the stated dates of public engagement and the dates appearing in newspaper adverts used as evidence of consultation. These inconsistencies have raised doubts about the credibility of the ministry’s documentation.

“As a Committee, we have resolved to have the Cabinet Secretary in charge of Agriculture and Livestock Development address the gaps in the Regulations,” said Committee Chairperson, Tharaka Nithi Senator Mwenda Gataya.