Political Leaders and Business Executives Unite to Address Ruto’s Sugar Tax Challenge
Friday, June 16th, Emmanuel Wangwe, a representative from Navakholo, proposed the reinstatement of the Sugar Act, which was repealed in 2013, to help regulate sugar prices in Kenya.
According to the member of parliament who chairs the Agriculture and Livestock Committee of the National Assembly, the act will aid in the regulation, development, and promotion of the sugar industry in Kenya, as well as regulate the price of sugar.
In addition, the act will require the state to establish the Kenya Sugar Board and define its powers and functions, which will include the licensing of sugar mills.
By the Act, the board will be responsible for monitoring the domestic market to identify and advise governments and interested parties on any distortions in the sugar market.
As specified in the guidelines, it will also facilitate an equitable mechanism for the pricing of sugar cane and the allocation of proceeds from the disposal of sugar product by-products between millers and growers.
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During a tour of Kwale County, where sugar cane farmers complained of unfavorable market conditions, Wangwe made the remarks.
Officials and sugar industry stakeholders, including Kwale International Sugar Industries (KISCOL) General Manager Pamela Ogado, complained that squatters impeded operations at the sugar processing facility.
She noted that the land in question was a government sublease, but that squatters had encroached on a portion of it.
Before introducing the bill, the Agriculture Committee will also hold discussions with other industry stakeholders.
Finance Bill Sugar Tax
While presenting 2023/2024 budget to Parliament on Thursday, June 15, Treasury Cabinet Secretary Njuguna Ndung’u proposed imposing an excise tax on sugar, citing the product’s association with a variety of diseases as justification.
“To discourage sugar consumption, I propose to introduce excise duty on imported sugar at the rate of Ksh 5.0 per kilogram, excluding sugar imported or purchased locally for use in the manufacture of pharmaceutical products by registered pharmaceutical manufacturers,” he stated.
Currently, a kilogram of sugar costs Kenyans Ksh200, but prices are expected to increase following Njuguna’s proposal.
Due to the severe sugar shortage, Agriculture Cabinet Secretary Mithika Linturi announced on May 24 plans to import 180,000 tonnes of sugar.
“It is unfortunate because we should be crashing sugar from within the country that should be able to sustain our market,” lamented the CS.
Political Leaders and Business Executives Unite to Address Ruto’s Sugar Tax Challenge
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