The Ministry of Agriculture has introduced a new Sugar Development Levy that took effect on July 1, 2025, requiring millers and sugar importers to pay 4 percent of the ex-factory price or the cost, insurance, and freight (CIF) value of sugar. The Kenya Revenue Authority (KRA) will collect this levy monthly.

• The levy is set to generate an estimated Ksh4 billion annually for the sugar industry.
• Mutahi Kagwe, the Agriculture Cabinet Secretary, emphasized the importance of this levy for industry stability.
• 40 percent of the investment will be directed towards cane development programs, with funds allocated for road rehabilitation and factory upgrades.