The Sugar Act, 2024 goes into effect in Kenya

KENYA – The Sugar Act, 2024, which was assented to by President William Ruto on 1st November 2024, officially came into effect on 21st November 2024. 

The new legislation aims to reshape the sugar sector by establishing two key institutions: the Kenya Sugar Board (KSB) and the Kenya Sugar Research and Training Institute (KSR&TI). 

These institutions are tasked with regulating and overseeing the sugar industry, a responsibility that was previously handled by the Agriculture and Food Authority (AFA).

The Kenya Sugar Board will now take over the role of managing the sugar industry, while the Kenya Sugar Research and Training Institute will focus on sugar-related research, a function that was under the Kenya Agricultural and Livestock Research Organization (KARLO). 

Agriculture Cabinet Secretary (CS) Andrew Karanja has appointed acting Chief Executive Officers to lead these new bodies.

The Act also stipulates that employees who were previously part of the Kenya Sugar Board before the AFA Act 2013, as well as those currently working in the AFA’s Sugar Directorate, will transition to the new Board.

The Act further mandates that the Kenya Sugar Board will include representatives from sugar growers, both private and public sugar mills. 

This development comes at a time when Kenya’s sugar industry faces challenges in the regional market. 

Reports suggest that Rwanda has surpassed Kenya as the leading destination for Uganda’s sugar exports within the East African Community (EAC). 

According to data from the Uganda Revenue Authority (URA), Rwanda accounted for 35.3% of Uganda’s sugar exports to the EAC between January and September 2024, amounting to 39.3 metric tonnes (MT) out of a total of 111.1 MT.

This shift is further confirmed by Jim Kabeho, the chairman of the Uganda Sugar Manufacturers Association, who stated that Uganda has not been exporting sugar to Kenya since July 2024. 

Rwanda, which heavily relies on imported sugar to meet its local demand, has increased its sugar imports from Uganda, helping to stabilize domestic prices. 

In June 2024, sugar prices in Kigali reached a peak of US$1.47 per kilogram, but by early October, prices had fallen to between US$0.88 and US$0.95 per kilogram due to the increased supply from Uganda.

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