NAIROBI, Kenya – President William Ruto has officially signed the Sugar Bill 2022 into law, marking a significant milestone in the government’s efforts to revive Kenya’s ailing sugar industry.
Once a thriving sector and a major economic backbone for thousands of farmers, the sugar industry has struggled in recent years due to poor regulation, inefficiencies, and insufficient funding.
The new legislation introduces sweeping reforms aimed at tackling these longstanding challenges.
It paves the way for the re-establishment of the Kenya Sugar Board, the creation of a dedicated Kenya Sugar Research and Training Institute, and the introduction of a Sugar Development Levy to fund industry improvements.
The reconstituted Kenya Sugar Board will be tasked with revitalizing the industry by regulating production, coordinating stakeholders, and crafting policy.
Additionally, it will oversee sugar trade, advise cane growers, regulate pricing, and license milling operations.
Qualified crop inspectors will also be appointed to ensure compliance with industry standards.
Funding for these initiatives will draw primarily from allocations by the National Assembly and a newly established Sugar Development Levy.
Capped at 4% of the domestic sugar value and cost, insurance, and freight (CIF) of imported sugar, the levy is designed to provide sustainable funding for the sector.
Allocations from the levy will support critical areas: 40% will go towards improving cane productivity, 15% each for factory development, research, and infrastructure in cane-growing regions, 10% for the Board’s administration, and 5% for sugarcane farmer organizations.
Additionally, the bill mandates the establishment of the Kenya Sugar Research and Training Institute to drive research and innovation, governed by a nine-member board.
The Institute aims to make new sugar technologies more accessible, with a focus on boosting production efficiency and cane quality.
For sector disputes, a five-member Sugar Arbitration Tribunal will be created, chaired by a judicially qualified professional.
The tribunal will handle disputes within 90 days, with options to appeal in the High Court or Court of Appeal.
With this framework, the government aims to restore the industry to its former stature, providing much-needed support for sugarcane farmers, producers, and the local economy.
Once a thriving sector and a major economic backbone for thousands of farmers, the sugar industry has struggled in recent years due to poor regulation, inefficiencies, and insufficient funding.
The new legislation introduces sweeping reforms aimed at tackling these longstanding challenges.
It paves the way for the re-establishment of the Kenya Sugar Board, the creation of a dedicated Kenya Sugar Research and Training Institute, and the introduction of a Sugar Development Levy to fund industry improvements.
The reconstituted Kenya Sugar Board will be tasked with revitalizing the industry by regulating production, coordinating stakeholders, and crafting policy.
Additionally, it will oversee sugar trade, advise cane growers, regulate pricing, and license milling operations.
Qualified crop inspectors will also be appointed to ensure compliance with industry standards.
Funding for these initiatives will draw primarily from allocations by the National Assembly and a newly established Sugar Development Levy.
Capped at 4% of the domestic sugar value and cost, insurance, and freight (CIF) of imported sugar, the levy is designed to provide sustainable funding for the sector.
Allocations from the levy will support critical areas: 40% will go towards improving cane productivity, 15% each for factory development, research, and infrastructure in cane-growing regions, 10% for the Board’s administration, and 5% for sugarcane farmer organizations.
Additionally, the bill mandates the establishment of the Kenya Sugar Research and Training Institute to drive research and innovation, governed by a nine-member board.
The Institute aims to make new sugar technologies more accessible, with a focus on boosting production efficiency and cane quality.
For sector disputes, a five-member Sugar Arbitration Tribunal will be created, chaired by a judicially qualified professional.
The tribunal will handle disputes within 90 days, with options to appeal in the High Court or Court of Appeal.
With this framework, the government aims to restore the industry to its former stature, providing much-needed support for sugarcane farmers, producers, and the local economy.
