KENYA – Kenya’s National Treasury has extended the duty-free importation period for white and brown sugar from outside the Common Market for Eastern and Southern Africa (Comesa) by two months.
Initially set to close on April 6, 2024, the window will remain open until June 30, 2024. This extension allows traders to import 250,000 tonnes of duty-free sugar to supplement local production and help reduce prices.
In a Gazette Notice, Treasury Cabinet Secretary Njuguna Ndung’u announced, “The Cabinet Secretary for the National Treasury and Economic Planning has extended the period for the importation of 250,000 metric tonnes of white or brown sugar specified in Gazette Notice No. 14093 of 2023 dated October 13, 2023, from April 6, 2024, to June 30.”
The extension follows a request from Agriculture Cabinet Secretary Mithika Linturi, who highlighted a projected domestic sugar deficit of 192,000 tonnes for the first half of 2024 based on current local production trends.
Kenya had previously allowed traders to import 100,000 tonnes of duty-free sugar in January last year and permitted an additional 180,000 tonnes in May.
A temporary four-month ban on local milling led to a decline in local production, prompting the government to authorize the importation of 290,000 tonnes of sugar under the duty-free regime in August. This was followed by an additional allowance of 250,000 tonnes in October.
These sugar imports, combined with a recovery in local production, have resulted in a significant drop in sugar prices to Kes165 (US$1.25) per kilogram in March from a high of Sh229 (US$1.74) per kilogram in July of the previous year.
During the same period, local sugar production more than doubled to 69,520 tonnes, up from 33,246 tonnes.
Privatization of sugar firms
The extension coincides with the government’s plan to privatize state-owned sugar mills in the Lake region, which is moving forward.
Agriculture PS Paul Ronoh announced on Monday that the government is proceeding with the leasing of Nzoia, Chemilil, Sony, and Muhoroni sugar mills in an attempt to revive them.
Ronoh assured that farmers and workers who have not received their pay will have their arrears cleared within three months as promised by the government.
“We want to bring these mills back on track for the benefit of the locals, and that can only be achieved by allowing a private investor to take over,” Ronoh said.
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