Agriculture CS Mutahi Kagwe. Photo | courtesy.
The government has introduced a 4 percent Sugar Development Levy (SDL) on both locally produced and imported sugar, effective July 1, 2025.
In a statement, the Ministry of Agriculture said the levy aims to support the revival of the struggling sugar industry.
The levy will be calculated at 4 percent of the ex-factory price for locally produced sugar and 4 percent of the cost, insurance, and freight (CIF) value for imported sugar.
All sugar millers and importers will be required to remit the levy, with payments due by the 10th day of the month following the sale or importation.
The Kenya Revenue Authority (KRA) has been appointed as the collection agent and is expected to provide detailed guidelines on the payment process.
“KRA will issue a communication advising on the mode of collection,” the ministry stated.
According to the government, the levy is intended to boost the sugar sector by improving infrastructure, supporting research, and directly benefiting farmers.
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The introduction of the levy follows the gazettement of the Sugar Development Levy Order, 2025, issued by Agriculture Cabinet Secretary Mutahi Kagwe under Section 40(1) of the Sugar Act No. 11 of 2024.
The Order aims to streamline the collection of levies on both locally produced and imported sugar, with the funds directed toward the development, promotion, and regulation of the sugar industry, particularly to support sugarcane farmers and related stakeholders.
Last month, the government pledged to invest Sh4 billion annually through the SDL to revive the sector, with 40 percent of the amount about Sh2 billion earmarked for nationwide cane development program.
