Cabinet Secretary (CS) for Agriculture Mutahi Kagwe explained to the Senate Committee on Delegated Legislation why millers and importers will pay a 4% sugar development levy, effective July 1, 2025 under the Sugar Act, 2024. This levy aims to expand the sugar sector, support quality-based cane payment, and fund research.

• The 4% levy is expected to generate Ksh.4 billion annually, requiring eight years to raise the Ksh.32 billion needed for reforms.
• CS Kagwe emphasized that the rate was determined after extensive public participation and a Regulatory Impact Assessment.
• The levy will be collected by the Kenya Revenue Authority (KRA) and earmarked for the Sugar Development Fund, with stakeholder oversight.