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The government has introduced a 4% Sugar Development Levy (SDL) on all sugar produced locally or imported, starting July 1, 2025, as part of a broader strategy to revitalise Kenya’s sugar industry.
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In a statement, the Ministry of Agriculture said the levy will apply at 4% of the ex-factory price for locally produced sugar and 4% of the cost, insurance, and freight (CIF) value for imported sugar.
All millers and importers will be required to remit the levy by the 10th of the month following the sale or importation. The Kenya Revenue Authority (KRA) will oversee the collection and is expected to release detailed payment guidelines soon.
“The KRA will issue a notice on how the levy will be collected,” the ministry noted.
While the government says the funds will go toward improving sector infrastructure, research, and farmer support, some industry players have raised concerns that the levy may increase sugar prices for consumers.
The new charge follows the publication of the Sugar Development Levy Order, 2025, under Section 40 (1) of the Sugar Act, No. 11 of 2024, by Agriculture Cabinet Secretary Mutahi Kagwe.
The primary goal of the levy is to streamline revenue collection from both imported and domestic sugar, with proceeds directed toward the growth, regulation, and sustainability of the sugar industry, particularly in support of sugarcane farmers.
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Last month, the government committed to investing Sh4 billion annually through the SDL. Of this, about Sh2 billion—40% of the total—will be directed to national cane development programs.
“These investments are crucial for ensuring the long-term viability of our sugar sector,” said CS Kagwe.
