KENYA – Kenya’s President William Ruto has signed the Sugar Bill 2022 into law, a move aimed at revitalizing the country’s struggling sugar industry and restoring its role as a significant economic contributor.
The bill introduces a comprehensive set of reforms intended to tackle long-standing challenges that have severely impacted the industry, a primary source of livelihood for numerous farmers.
The new law paves the way for the re-establishment of the Kenya Sugar Board and the creation of the Kenya Sugar Research and Training Institute, alongside a Sugar Development Levy to secure structured funding for these entities.
Together, these measures are expected to enhance sugar production, improve milling efficiency, promote value addition, and ultimately stabilize the sector.
The Kenya Sugar Board, under the new law, will assume a regulatory and developmental role in the industry.
Empowered to regulate pricing, license mills, coordinate stakeholder interests, and oversee market surveillance, the Board will work closely with government agencies and research institutions.
It will also support growers through advisory services and appoint qualified inspectors to enforce industry regulations.
Funding for the Kenya Sugar Board will come through allocations from the National Assembly and a Sugar Development Levy, capped at 4 percent of the domestic sugar value and CIF of imported sugar.
The funds will be allocated as follows: 15 percent for factory development, 15 percent for research, 40 percent for cane productivity, 15 percent for infrastructure, 10 percent for administration, and 5 percent for farmer organizations.
Additionally, the bill calls for the establishment of the Kenya Sugar Research and Training Institute, which will advance research and innovation in the sector.
The institute will be governed by a nine-member board, chaired by a Cabinet Secretary appointee.
To manage disputes, the bill creates a five-member Sugar Arbitration Tribunal, chaired by a judge-qualified individual. The tribunal will resolve conflicts within 90 days, with provisions for further appeals to the High Court and Court of Appeal.
The reforms incorporate recommendations from a task force led by former Kakamega Governor Wycliffe Oparanya, which proposed standardizing sugar catchment areas to prevent cane poaching.
Under the bill, millers are required to operate within their assigned areas and can only purchase cane from growers with valid supply agreements.
These reforms aim to increase domestic sugar production, reduce dependency on imports, and ultimately enable Kenya’s sugar industry to thrive, benefiting farmers and workers nationwide.
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