President William Ruto has signed into law the Sugar Bill 2022, this piece of legislation aimed at rejuvenating Kenya’s sugar sector after years of decline and intense challenges among stakeholders.
The new law seeks to address critical issues that have stalled growth in this once-thriving industry, which is a vital source of income for numerous farmers across the country.
The Sugar Bill 2022 brings several pivotal changes, including the re-establishment of the Kenya Sugar Board and the creation of the Kenya Sugar Research and Training Institute.
These bodies will work alongside a newly implemented Sugar Development Levy to ensure the industry has the support it needs to increase production, optimize milling, align capacity with cane supply, and promote value addition throughout the value chain.
The Kenya Sugar Board will be tasked with regulating, developing, and promoting the industry. It will also work closely with policymakers, government agencies, and research institutions to foster innovation and development.
Key functions of the Board will include overseeing sugar trade, advising growers, regulating pricing, licensing mills, and conducting market surveillance. Additionally, the Board will appoint qualified crop inspectors to enforce sector regulations and ensure standards are met.
The structured funding of the Kenya Sugar Board will be sourced from National Assembly allocations and a Sugar Development Levy, which is capped at 4% of the domestic sugar value and the cost, insurance, and freight (CIF) value of imported sugar.
This levy will be allocated to key areas: 15% for factory development, 15% for research, 40% for improving cane productivity, 15% for infrastructure in sugarcane-producing regions, 10% for Board administration, and 5% for farmer organizations.
To advance research and innovation, the newly established Kenya Sugar Research and Training Institute will drive access to sugar technologies, guided by a nine-member board led by a Cabinet Secretary appointee.
Additionally, a five-member Sugar Arbitration Tribunal will be created to settle disputes within 90 days, with provisions for appeals to higher courts.
The Sugar Bill 2022 represents a major step toward sustainable growth and the revival of Kenya’s sugar sector, with the potential to transform the industry into a stable and profitable enterprise that benefits farmers, stakeholders, and the wider economy.
