On November 1, 2024, at the State House, President William Ruto assented to the Sugar Bill 2022 which is aimed at revitalizing the dwindling sugar sector in the country.
Sponsored by Hon. Emmanuel Wangwe and co-sponsored by Sen. David Wakoli, the Bill was considered by both Houses and approved by the National Assembly on Friday, 18th October 2024, and by the Senate on 29th October 2024.
The sugar bill will address the crippled sector of the economy, which was once the backbone of the Western region of Kenya. The once vibrant and profitable industry was a vital source of livelihood for many farmers until politics and mismanagement devoured it.
Kenya Sugar Research and Training Institute
The bill now law, will create the Kenya Sugar Board (KSB) and the Kenya Sugar Research and Training Institute (KSRTI). The KSRTI will be managed by a nine-member board led by a Cabinet Secretary appointee.
The institute will benefit from 15% of the development levy, empowering it to advance research and improve standards. This is in a bid to strengthen Kenya’s competitiveness in both local and global sugar markets.
The Kenya Sugar Board
The Kenya Sugar Board will be empowered to regulate, develop, and promote the sugar industry, coordinate stakeholders, participate in policy-making, and collaborate with government and research institutions.
The Board will also oversee the sugar trade, advise growers, regulate pricing, license mills, and conduct market surveillance.
Additionally, it will appoint qualified crop inspectors to enforce regulations within the sector.
Funding for the Kenya Sugar Board will come from National Assembly allocations and a Sugar Development Levy.
The levy, capped at 4% of domestic sugar value, and CIF of imported sugar, will be implemented in the process. Allocations include:
- 15% for factory development
- 15% for research, 40% for cane productivity
- 15% for infrastructure in sugarcane-producing regions
- 10% for Board administration, and
- 5% for sugarcane farmers’ organizations
The Board, comprising 14 members, will be drawn from farmers, stakeholders, government agencies, and the Governor’s council.
It will set industry standards, facilitate local and international trade in sugar, regulate prices, and provide direct advisory support to sugar growers.
A New Dawn For The Industry
According to the President’s office, the above measures are set to:
i. strengthen the industry by boosting production
ii. enhancing milling efficiency
iii. aligning capacity with cane supply
iii. promoting value addition
iv. providing critical funding to benefit all stakeholders.
For dispute resolution, a 5-member Sugar Arbitration Tribunal will be established, chaired by a judge-qualified individual, to resolve sector disputes within 90 days, with further appeals permitted to the High Court and Court of Appeal.
