Govt Enforces 4% Sugar Levy on Millers and Importers From July 1
The Ministry of Agriculture has enforced a 4% Sugar Development Levy on all millers and sugar importers, effective from July 1, 2025.
In a statement issued on Tuesday, the ministry confirmed that the levy will be collected by the Kenya Revenue Authority (KRA) and must be remitted by the tenth day of every month. The charge will apply at a rate of 4% of the ex-factory price for locally produced sugar and 4% of the cost, insurance, and freight (CIF) value for imported sugar.
“The State Department for Agriculture would like to inform members of the public that the Sugar Development Levy is now in effect from July 1, 2025,” read the statement.
Further guidance on how KRA will collect the levy is expected to be communicated shortly.
Agriculture Cabinet Secretary Mutahi Kagwe said the levy aims to raise about Ksh4 billion annually, which will be reinvested into the sugar industry to improve stability, boost farmer incomes, and support long-term sustainability.
Speaking during a June 16 visit to the West Kenya Sugar Company, CS Kagwe outlined the government’s strategic investment plan funded by the levy. Forty per cent of the funds will be channeled into nationwide cane development programs. The remaining 60% will target strategic initiatives across the sugar value chain.
Specifically, 15% of the levy funds—about Ksh600 million—will go toward rehabilitating roads in sugar-growing regions. Another Ksh600 million will fund research and innovation, while a similar amount will be used for factory upgrades and rehabilitation.
An additional Ksh2 million, or 5% of the fund, will be allocated to strengthening farmer organizations. The remaining 10% will cover administrative functions under the Sugar Board.
“These investments are designed to secure the long-term sustainability of the sugar industry,” said Kagwe.
The ministry believes this move will not only support sugar farmers but also address inefficiencies within the industry and make local production more competitive against imports.
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Govt Enforces 4% Sugar Levy on Millers and Importers From July 1