The Kenya Revenue Authority (KRA) has issued guidelines for the collection of a new Sugar Development Levy, effective July 1, 2025. This follows Agriculture Cabinet Secretary Mutahi Kagwe’s designation of KRA as the collector of the levy, which aims to streamline and support the sugar industry.

• For local millers, the levy is 4 per cent of the ex-factory price, payable by the 10th day of the following month via iTax under "Agency Revenue".
• For imported sugar, the levy is 4 per cent of the cost, insurance, and freight value, payable at the time of importation.
• The government plans to invest Ksh4 billion annually through the levy, with 40 per cent (approximately Ksh2 billion) allocated to cane development programs and 60 per cent to other strategic sector developments.
• Despite aiming for sustainability, the levy is expected to increase sugar costs.