Sugar Prices Set To Surge As New Levy Takes Effect In February

Consumers are set to pay more for sugar starting February 1st, 2025.

This followed the introduction of a new tax on the sweetener.

Agriculture Cabinet Secretary Aden Duale officially gazetted the Sugar Development Levy Order, 2025, which imposes a levy of four percent on both domestic and imported sugar.

The new levy followed the signing into law of the Sugar Act of 2024 by President William Ruto three months ago.

There is hereby imposed a levy, as prescribed in section 40(1) of the sugar Act 2024, at the rate of four per cent of the value for domestic sugar and four percent of CIF (cost of insurance and freight) value on imported sugar. 

Aden Duale stated.

The levy shall be remitted to the board not later than the 10th day of the month following the month during which the levy shall become due. 

Aden Duale added.

The funds that will be collected from the Sugar Development Levy will be used to support various operations within the sugar industry, including the price stabilization, infrastructure development and research.

The allocations from the levy will be set as follows: 15 per cent for factory development, 15 per cent for research, 40 per cent for cane productivity, 15 per cent for infrastructure in sugar-cane-producing regions, 10 per cent for KSB administration and 5 per cent for farmers\’ organization.

The new tax will be expected to accelerate the cost of sugar which had recently seen a significant price drop.