President Ruto enacts 2022 Sugar Bill

Nairobi, 

Friday, 1 November, 2024

McCreadie Andias 

President William Ruto has today assented to the Sugar Bill 2022, aiming to revamp the sugar sector.

"The enactment of the Sugar Bill sets the right pace for the stimulation of our sugar sector and will address deep-rooted challenges that have for long crippled the once vibrant and profitable industry." The President said. 

The Bill facilitates the re-establishment of the Kenya Sugar Board which will now 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 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.

The Bill introduces the Kenya Sugar Research and Training Institute which will advance research, innovation, and access to sugar technologies. It will be governed by a 9-member Board chaired by an appointee of the Cabinet Secretary.

Furthermore, the Bill implements the Sugar Development Levy that will strengthen the industry by improving production, aligning capacity with supply, enhancing value addition and providing critical funding.

The Sugar Development Levy will be capped at 4% of domestic sugar value and CIF of imported sugar. 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’ organisations.

The Bill will also address the challenges that have crippled the once vibrant and profitable industry, a vital source of livelihood for many farmers.

The applied mechanisms will now enhance sugar production in the country, enhancing milling efficiency, aligning capacity with cane supply, promoting value addition, and 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.

The Event was graced by Deputy President Prof. Kithure Kindiki, Prime Cabinet Secretary Musalia Mudavadi, Attorney-General Dorcas Oduor, Speakers Moses Wetang’ula and Amason Kingi.