President William Ruto has assented to the Sugar Bill 2022, aiming to revitalise the sugar sector.
The Bill will address the challenges that have crippled the once vibrant and profitable industry, a vital source of livelihood for many farmers.
In addition, the Bill will enable the re-establishment of the Kenya Sugar Board, the creation of the Kenya Sugar Research and Training Institute, and the implementation of the Sugar Development Levy. These measures are set to strengthen the industry by boosting production, enhancing milling efficiency, aligning capacity with cane supply, promoting value addition, and providing critical funding to benefit all stakeholders.
The Kenya Sugar Board will be empowered to regulate, develop, and promote the sugar industry, coordinate stakeholders, participate in policy-making, and collaborate with government and research institutions.
The Board will also oversee the sugar trade, advise growers, regulate pricing, license mills, and conduct market surveillance.
Additionally, it will appoint qualified crop inspectors to enforce regulations within the sector.
Funding for the Kenya Sugar Board
Structured funding for the Kenya Sugar Board will come from National Assembly allocations and a Sugar Development Levy, capped at 4% of domestic sugar value and CIF of imported sugar.
Allocations include 15% for factory development, 15% for research, 40% for cane productivity, 15% for infrastructure in sugarcane-producing regions, 10% for Board administration, and 5% for sugarcane farmers’ organisations.
The establishment of the Kenya Sugar Research and Training Institute will advance research, innovation, and access to sugar technologies, governed by a 9-member Board chaired by an appointee of the Cabinet Secretary.
For dispute resolution, a 5-member Sugar Arbitration Tribunal will be established, chaired by a judge-qualified individual, to resolve sector disputes within 90 days, with further appeals permitted to the High Court and Court of Appeal.
