The price of sugar in Kenya is going to go up starting February 1, 2025. This is because the government is adding a new tax called the Sugar Development Levy, which is 4% on both locally made and imported sugar.
The money from this tax will be used to support the Kenya Sugar Board (KSB), help with research, and improve infrastructure in the sugar industry.
Many families in Kenya are preparing for higher sugar prices because of this new tax from the Sugar Act. The tax applies to both sugar made in Kenya and sugar brought in from other countries.
Last year, Agriculture Cabinet Secretary announced that the tax will help support local sugar production and the Kenya Sugar Board. However, many people are worried that consumers will have to pay more, while they are already facing high costs of living.
The new Sugar Development Levy Order, 2025, charges 4% on both local and imported sugar to help improve the struggling sugar industry. Some consumer groups and political leaders have criticized this tax, saying it will unfairly affect low-income families who are already struggling with rising prices.
They believe the government should focus on solving the actual problems in the sugar industry, like inefficient production and smuggling, instead of putting more financial burden on consumers.
Independent economist Ian Njoroge stated, “This tax is simply a way to take money from poor people. While the sugar industry needs help, making consumers pay even more is not fair.”
The sugar industry in Kenya has many difficulties, such as falling production, competition from cheaper imported sugar, and high production costs.
The government hopes this levy will raise money for research and improvements, support farmers, and increase local sugar production so that Kenya doesn’t rely as much on imports.
The Kenya Sugar Board will collect this levy each month, and the money will be used to support different projects meant to help the sugar sector, like better farming practices, modernizing sugar factories, and fighting smuggling.
Even though consumer groups have raised concerns, the government plans to go ahead with this tax. Officials believe it is important to make the sugar industry stronger in the long run, as it plays an important role in the economy.
However, it remains unclear how much this tax will raise sugar prices. Retailers and consumer groups are worried that the tax will lead to a big increase in sugar prices, which will further strain household budgets.
The government defends the new tax as necessary to help the struggling sugar industry, which is dealing with challenges from cheap imports and problems with local production. The Kenya Sugar Board says that the money from the levy will be reinvested in the sector to promote better practices, improve infrastructure, and ultimately boost local sugar production.
