MPs back reintroduction of sugar levy to support sector

Sugar millers and importers will be required to pay a 4pc sugar levy if the Sugar Bill of 2022 is enacted into law in its current form.

Legislators says the sugar levy which will be administered by the commodity fund is meant to among others assist farmers access low-cost credit for cane development as well as liquidate the sub sector.

The National Assembly is seeking to raise at least Ksh 2.5 billion annually by reintroducing the sugar levy on both locally produced and imported sugar.

The sugar levy that was abolished in 2016 due to mismanagement concerns, has been reintroduced in the new bill.

Legislators say part of proceeds from the sugar levy will be used for cane development, to ensure local millers have enough cane to crash and reduce competition among millers

The Sugar Bill of 2022 also proposes a minimum of two and a maximum of three millers in each zone to reduce hoarding of cane by dominant millers.

Three out of 17 new applicants have been cleared to set up sugar milling plants as more investors eye the sugar industry.