Senate demands answers from Agriculture Ministry over Sugar Levy gaps
By Kiprono Keileb, July 29, 2025The Senate Committee on Delegated Legislation has summoned the Ministry of Agriculture and Livestock Development to clarify contentious issues surrounding the newly introduced Sugar Development Levy.
According to a statement posted on Parliament’s official Facebook page dated Tuesday, July 29, 2025, the committee flagged several procedural concerns in Legal Notice No. 113 of 2025, which formally introduced the new levy under the Sugar Act, 2024. The notice, published on June 30, 2025, imposes a 4% charge on the ex-factory price of locally produced sugar and an equivalent 4% levy on the CIF (cost, insurance, and freight) value of imported sugar.
Under the new law, sugar millers are responsible for remitting the levy on local sugar, while importers are required to pay the same on foreign shipments. Payments are due by the tenth day of the month following either manufacture or importation. But senators say the process that birthed the levy is murky.
Doubts over public participation
Doubts Over Public Participation During a meeting held at Bunge Tower on Tuesday, July 29 2025, the committee questioned the authenticity of documents presented as proof of public engagement. According to the lawmakers, the dates submitted by the ministry do not match those in newspaper notices cited as evidence.
“The timelines don’t add up,” said Tharaka Nithi Senator Mwenda Gataya, who chairs the committee. “As a committee, we have resolved to have the Cabinet Secretary in charge of Agriculture and Livestock Development to address the gaps in the regulations.”
The concern is that if public participation wasn’t carried out properly, the levy could be legally challenged or seen as lacking public legitimacy, especially in a sector that directly impacts millions of Kenyans.
Concerns over economic impact
While the objective of the levy is to raise revenue for the development of the sugar industry, there are rising concerns about its ripple effect on consumers and manufacturers.
Senator Julius Murgor (West Pokot) and Senator Betty Montet echoed concerns that the levy could increase the cost of sugar in the market, putting more strain on households already burdened by high food prices.
“Before we ask Kenyans to pay more, we must be sure the law was passed in the right way and for the right reasons,” said one committee member during the session.
The Ministry of Agriculture is now expected to appear before the committee to respond to the discrepancies and explain how the regulations were developed and implemented.
The committee’s final decision will likely determine whether the levy proceeds as planned or if amendments will be necessary.
This comes at a time when the sugar sector is struggling with issues ranging from delayed payments to farmers, operational inefficiencies in sugar factories, and increasing dependency on imported sugar.
The Senate’s move signals heightened oversight and growing legislative scrutiny over how new tax measures are introduced, especially those that affect basic commodities.
Spotlight on regulatory oversight
The issue also adds to ongoing national conversations about the quality of governance and accountability in ministries. With public trust in regulatory processes at stake, the outcome of this engagement could set a precedent for how future levies and development orders are handled.
As pressure mounts, Kenyans and stakeholders in the sugar industry will be watching closely to see if the Senate can help bring clarity and fairness to the sugar levy debate.