The Sugar task force report, handed over to President Uhuru on Monday 24th February 2020 has recommended the reintroduction of the sugar levy in Kenya.
Receiving the sugar task force report at Statehouse, Uhuru promised that the government would fully implement the recommendations in the report.
The recommendation to reintroduce the sugar levy will be passed on to the consumers, which means increased cost of living due to high sugar prices.
Additionally, most industry players feel that the levy will go a long way in resuscitating the ailing sugar industry whose troubles reached a climax after Mumias Sugar was placed under receivership.
The sugar development levy, abolished in 2016 by the then Cabinet Secretary of Finance, Henry Rotich, saw consumers pay 5 shillings extra for every kilogram of sugar bought.
When it was abolished, industry stakeholders foretold the death of the sugar industry and true to their prediction, Mumias sugar was on its knees and soon afterward, it was placed under receivership.
The sugar report had been long overdue and farmers had been on the edge for over 8 months waiting for its release due to the terrible state of the industry.
The Sugar task force report is expected to be gazetted by the end of this week on Friday, 28th February 2020.
Other key recommendations made by the sugar report include:
- The privatization of 5 sugar mills namely; Nzoia, Chemelil, Muhoroni, and Sony,
- Enactment of the sugar act and,
- Gazetment of the sugar sector regulations.