President William Ruto has signed the Sugar Bill (National Assembly Bills No. 34 of 2022) into law on Friday, November 1, 2024, officially re-establishing the Kenya Sugar Board and setting the stage for a comprehensive overhaul of the country’s sugar industry.
Sponsored by Navakholo MP Emmanuel Wangwe and co-sponsored by Bungoma Senator David Wakoli, the Act received National Assembly approval on October 18, 2024, and Senate approval on October 29, 2024. This legislation aims to address long-standing challenges within the sugar sector, including rising production costs, dwindling sugarcane acreage, inadequate market control, unregulated imports, and lapses in research and development.
The reformed Kenya Sugar Board, which will take over from the Agriculture and Food Authority’s Sugar Directorate, includes 14 members representing farmers, millers, government agencies, and the Council of County Governors. Tasked with setting industry standards, regulating prices, and overseeing trade, the Board will directly support sugar growers and help streamline sector management.
A newly introduced Sugar Development Levy, capped at 4% of the value of domestic sugar and import costs, is projected to fund factory development, infrastructure in sugar-producing regions, and administrative support for the Board. Allocations include 40% for cane development, 15% for infrastructure in production zones, 10% for board administration, and 5% to support sugarcane farmer organizations.
The law also empowers the Kenya Sugar Board to appoint crop inspectors to ensure compliance, aiming to curb unregulated production and safeguard farmers from exploitative practices. Additionally, the Kenya Sugar Research and Training Institute is set to receive 15% of the levy funds to bolster research and enhance training initiatives within the industry.
