KNCCI submits recommendations on proposed Sugar Development Levy Order, 2025 

KENYA – The Kenya National Chamber of Commerce and Industry (KNCCI) has submitted its recommendations to the Kenya Sugar Board regarding the proposed Sugar Development Levy Order, 2025.  

As the longest-serving independent voice of the private sector, KNCCI continues to advocate for policies that promote trade and investment while supporting enterprise growth. 

Following consultations with its members, KNCCI has proposed a number of adjustments to the draft order.  

Among its recommendations is the extension of the implementation date from February 1, 2025, to March 1, 2025. According to KNCCI, this additional time will allow sugar millers to establish the necessary structures for levy collection and remittance. 

The Chamber has also recommended maintaining the 4% CIF (Cost, Insurance, and Freight) value levy on imported sugar. This measure, it argues, is crucial for promoting local production and addressing Kenya’s sugar deficit, which averaged 450,800 tonnes annually between 2019 and 2023. 

Similarly, KNCCI has endorsed retaining a 1% levy on the value of domestically produced sugar. This, it notes, will give local sugar a competitive advantage over imported products, making it more affordable, increasing demand, and stimulating domestic production. 

In addition, KNCCI has called for an exemption from the 4 percent levy on white industrial sugar imported by registered manufacturers. The Chamber cited Kenya’s lack of capacity for local production of white industrial sugar, arguing that the levy unnecessarily inflates costs without benefiting domestic producers. 

The proposed Sugar Development Levy Order, 2025, is intended to raise funds for research and development, modernize infrastructure, and support farmers.  

The Kenya Sugar Board, which will oversee the levy collection, plans to use the funds to enhance cane farming practices, upgrade sugar factories, and combat the smuggling of low-cost sugar imports. 

The government hopes the levy will strengthen Kenya’s domestic sugar production and reduce dependence on imports.  

KNCCI emphasized the need for careful implementation to ensure the levy achieves its intended goals without imposing unnecessary burdens on the private sector. 

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