Parliament resolves deadlock on sugar bill, 2022, paving way for industry reforms

KENYA – Kenya’s Parliament has resolved a long-standing deadlock over the Sugar Bill, 2022, setting the stage for significant reforms in the country’s sugar industry. 

The members of parliament reached a consensus on key amendments, allowing the bill to move forward to President William Ruto for signing into law. 

Once enacted, the bill will remove sugar cane from the list of scheduled crops regulated by the Agriculture and Food Authority (AFA).  

Instead, a newly established Kenya Sugar Board will take over the regulation and promotion of the industry. The new board will also ensure equitable access to industry benefits for all stakeholders. 

Senate Agriculture Committee Chairperson James Murango said, “We have reached an agreement and we have the final draft. This means that anytime from now, the President will sign the Bill into law.” 

The bill’s provisions aim to address longstanding regulatory issues that have contributed to the decline of sugar cane farming, particularly in Western Kenya. 

Murango highlighted that these issues, coupled with an influx of sugar imports, had hurt local farmers and millers. “Removing sugar cane from being a scheduled crop in AFA means sugar will be given special attention,” he noted. 

Under the new law, the Kenya Sugar Board and the Agriculture Minister will have greater control over importation, safeguarding local farmers from unfair competition. 

Additionally, the bill introduces a sugar development levy, which will be imposed on domestic sugar production.  

The funds raised will be allocated to various aspects of industry development: 30 percent for factory development, research, and training at the Kenya Sugar Research and Training Institute; 40 percent for cane development and productivity enhancement; and 15 percent for infrastructural development in sugar-producing regions.  

These funds will be distributed on a pro-rata basis, depending on production levels. 

Murango emphasized that the new legislation would also help streamline the management of sugar production areas.  

The bill incorporates recommendations from a sugar taskforce report led by former Kakamega Governor Wycliffe Oparanya, which proposes standardizing sugar catchment areas to prevent cane poaching and improve cane management. 

Furthermore, millers will only be allowed to purchase sugar cane from growers who have a valid supply agreement with them, and millers must operate within their assigned catchment areas.  

These reforms are expected to revitalize Kenya’s sugar industry, increase domestic production, and create a surplus for export, benefiting millions of farmers and workers across the country. 

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