President William Ruto has officially signed the Sugar Bill 2022 into law, a move poised to revive Kenya’s once-thriving sugar sector and address long-standing challenges impacting farmers and the industry.
The new law paves the way for the re-establishment of the Kenya Sugar Board, the creation of the Kenya Sugar Research and Training Institute, and the introduction of a Sugar Development Levy. These initiatives aim to boost production, improve milling efficiency, align processing capacity with cane supply, foster value addition, and secure critical funding to benefit all stakeholders across the sugar sector.
Key Provisions of the Sugar Bill
1. Kenya Sugar Board:
The Kenya Sugar Board will be reconstituted with a mandate to regulate, develop, and promote the industry. The Board will play a central role in policy coordination, industry regulation, and collaboration with government and research institutions. Its responsibilities include overseeing sugar trade, advising farmers, regulating sugar pricing, licensing mills, conducting market surveillance, and appointing qualified crop inspectors to enforce industry regulations.
2. Funding through the Sugar Development Levy:
Structured funding for the Board will be sourced from National Assembly allocations and a Sugar Development Levy, capped at 4% of the value of domestic sugar production and CIF value of imported sugar. Funds will be allocated as follows:
- 40% for enhancing cane productivity
- 15% for factory development
- 15% for research initiatives
- 15% for infrastructure improvements in sugarcane-producing regions
- 10% for Board administration
- 5% for supporting sugarcane farmers’ organizations
3. Kenya Sugar Research and Training Institute:
A dedicated research and training institute will be established to foster innovation and development within the sector. Guided by a nine-member Board chaired by an appointee of the Cabinet Secretary, the institute will focus on advancing research and improving access to modern sugar technologies.
4. Sugar Arbitration Tribunal:
To manage disputes within the sugar industry, a Sugar Arbitration Tribunal will be established. Comprising five members led by a judge-qualified individual, the Tribunal is mandated to resolve disputes within 90 days, with further appeals permitted to the High Court and Court of Appeal.
Industry Impact
The reforms are expected to streamline operations, boost local production, and ultimately improve Kenya’s competitiveness in the sugar market. By enhancing research, securing funding, and establishing robust regulatory mechanisms, the Sugar Bill 2022 aims to bring long-term stability and growth to Kenya's sugar sector, benefiting farmers and positioning Kenya as a more self-sufficient sugar producer.