President William Ruto has signed into law the Sugar Bill, paving the way for changes in the sugar industry in the country.
The Bill will re-establish the Kenya Sugar Board, introduce the Kenya Sugar Research and Training Institute and implement the Sugar Development Levy.
According to Ruto, the changes will stimulate the sugar sector and address deep-rooted challenges that have for long crippled the once vibrant and profitable industry.
“The enactment of the Sugar Bill sets the right pace for the stimulation of our sugar sector and will address deep-rooted challenges that have for long crippled the once vibrant and profitable industry,” Ruto stated.
“Particularly, it facilitates the re-establishment of the Kenya Sugar Board, introduces the Kenya Sugar Research and Training Institute and implements the Sugar Development Levy that will strengthen the industry by improving production, aligning capacity with supply, enhancing value addition and providing critical funding.”
Through the bill, the sugar development levy will be collected from domestic sugar. 30 per cent will be ringfenced for factory development and rehabilitation, and research and training allocated to the Kenya Sugar Research and Training Institute.
40 per cent of the money will be applied for cane development and productivity enhancement while 15 per cent will be allocated to sugarcane-producing regions on a pro-rata basis based on production capacity for infrastructural development and maintenance, managed by the Sugar Board of Kenya.