Government Defends New Levy on Sugar
The government imposed the new levy effective July 1...
✨ Key Highlights
Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe defended the government's imposition of a 4 per cent levy on sugar, stating that a significant portion of the funds is dedicated to research to revitalize the struggling sugar sector.
- 40 per cent of the levy is earmarked for cane development and productivity enhancement.
- Agriculture Cabinet Secretary Mutahi Kagwe appeared before the Senate Committee on Delegated Legislation on Thursday, October 2.
- The levy aims to fund research to replace outdated cane varieties, which constitute 97 per cent of sugarcane in Kenya.
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Government Announces Agricultural Reforms, Farmer Payments, and New Sugar Levy - October 2025
President William Ruto announced a plan to boost farmer incomes by establishing modern agro-processing facilities and County Aggregation and Industrial Parks (CAIPs) to curb post-harvest losses. Separately, the government announced new coffee sector reforms and disbursed Ksh9.7 billion to farmers through the Coffee Cherry Advance Revolving Fund, with the goal of doubling production. In another development, Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe defended the government's imposition of a 4 per cent levy on sugar. He stated that a significant portion of these funds is dedicated to research aimed at revitalizing the struggling sugar sector.
