Millers and sugar importers have begun paying 4pc Sugar Development Levy as prescribed by the Sugar Act, 2022.
Ministry of Agriculture and Livestock Development has appointed the Kenya Revenue Authority (KRA) to collect the levy which is expected to support the sector.
“The Levy shall be remitted by the tenth day of the month immediately following the month when the domestic sugar is sold, and by the tenth day of the month immediately following the month when the sugar was imported,” said Dr Kipronoh Ronoh, Principal Secretary for Agriculture.
The levy will be applied at the rate of 4pc of the ex-factory price for domestic sugar and 4pc of cost, insurance and freight (CIF) value of each consignment of imported sugar.
According to the Sugar Act, 2022, 40pc of the funds will be allocated for the purpose of cane development, while 15pc of the fund will be allocated to develop and rehabilitate state owned factories which have deteriorated over the years leading to low cane production.
Another 15pc of the funds will be allocated to regions producing sugarcane on a pro-rata basis and which will be determined by production capacity for infrastructure development and maintenance.
The Kenya Sugar Board will receive 10pc to conduct it’s administrative duties while sugarcane farmers associations will receive 5pc.
In a move to improve Kenya’s research and training standards, the Kenya Sugar Research Training Institute will be allocated 15pc of funds collected through the levy.
“KRA will issue a communication advising on the mode of collection,” added Dr Ronoh.
By Ronald Owili
