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Kenyans are set to face higher sugar prices following the signing of a new Bill on imported sugar by President William Ruto. The Bill signed by the president has raised the excise duty on imported sugar to 7.5 per cent from the previous 5 per cent and may lead to an increase in prices of sugar and related products thereby taking away the low prices that most Kenyans enjoyed in the previous months. 

The new tax comes just a month after the government introduced a 4 per cent sugar development levy on imported sugar.  This is aimed at financing operations of the Kenya Sugar Board (KSB), and Kenya Sugar Research Institute (KISRI) and stabilizing the prices for cane farmers.

This is also aimed to encourage local production of the sweetener as the country according to President William Ruto recently recorded impressive performance in the sub-sector.

Currently, sugar prices range between Sh140 and Sh155 per Kg significantly lower compared to last year when the prices stood at about Sh218 per kg during the same period.

This move by the government comes at a time when the brown sugar prices in Nairobi and Mombasa increased by $14 (Sh1,806) and $8 (Sh1,032) per tonne, respectively, while the import prices saw mixed trends in import prices across the East African Community (EAC) during the week.

“The upward movement may indicate tightening supply or rising demand in Kenya. Meanwhile, Kampala, Dar es Salaam maintained stable prices reflecting balanced supply and demand dynamics in those markets,” a statement by Miwa Bora reads in part.

Official data by the Kenya National Bureau of Statistics shows that sugar prices in November slightly went down by 2.3 per cent compared to October this year. Compared to the same period last year, the prices have reduced by 31.2 per cent.

In July this year, domestic sugar production, according to the president, doubled to 84,000 tonnes surpassing the national monthly average consumption of 40,000 metric tons, marking a milestone in the sector.

“This historic milestone in our nation was a result of the subsidised fertilisers and robust policies to ensure that our farmers are able to benefit from their labour,” Ruto said.