NAIROBI, Kenya, Oct 2 – Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe on Thursday defended the 4 percent Sugar Development Levy before the Senate Committee on Delegated Legislation.
Appearing alongside Kenya Sugar Board CEO Jude Chesire, Kagwe said the levy, gazetted and implemented from July 2025, was necessary to sustain sector growth despite calls from industry players to lower it to 1 percent or raise it to 10 percent.
“Maintaining the rate at 4% is not about burdening the industry, but about aligning resources to the scale and scope of today’s challenges and opportunities,” Kagwe told the committee.
Proceeds from the levy are earmarked under the Sugar Act 2024 for cane development (40 percent), factory rehabilitation (15 percent), research and training (15 percent), infrastructure (15 percent), Kenya Sugar Board administration (10 percent), and farmer organizations (5 percent).
The CS said the funds were critical to address cane shortages, support new milling investments in Transmara and Bura, and replace outdated cane varieties with drought- and disease-resistant ones.
He added that the Kenya Sugar Research and Training Institute (KESRETI), whose mandate was expanded under the Act to include training, required more resources for curriculum and infrastructure.
“The 4% levy ensures adequate and sustainable financing to meet these expanded obligations,” Kagwe said.
The Senate Committee will consider the ministry’s position alongside stakeholder proposals before deciding whether to retain or review the rate.
