President Ruto signs bill into law to revive the sugar sector.

President William Ruto signed the Sugar Bill 2022 into law on Friday, aiming to revitalize Kenya’s sugar sector, a crucial source of income for many farmers.

The new law addresses key challenges that have hampered the once-thriving industry. It provides for the re-establishment of the Kenya Sugar Board, the creation of the Kenya Sugar Research and Training Institute, and the introduction of a Sugar Development Levy. These initiatives are expected to enhance production, improve milling efficiency, balance supply with milling capacity, promote value addition, and secure essential funding to support stakeholders across the industry.

The Kenya Sugar Board will oversee the regulation, development, and promotion of the sugar sector. It will coordinate stakeholders, participate in policy-making, and work with government and research institutions. The Board’s responsibilities will also include overseeing sugar trade, advising growers, regulating pricing, licensing mills, and conducting market surveillance. Additionally, it will appoint qualified inspectors to enforce industry standards.

Funding for the Kenya Sugar Board will come from National Assembly allocations and a Sugar Development Levy, capped at 4% of the value of domestically produced sugar and the CIF value of imported sugar. The funds will be allocated as follows: 15% for factory development, 15% for research, 40% for improving cane productivity, 15% for infrastructure in sugar-producing regions, 10% for Board administration, and 5% for sugarcane farmers’ organizations.

The Kenya Sugar Research and Training Institute will focus on advancing research, innovation, and access to new sugar production technologies, guided by a nine-member Board chaired by a Cabinet Secretary appointee.

To resolve industry disputes, a five-member Sugar Arbitration Tribunal will be established, chaired by a judge-qualified individual. The Tribunal will aim to resolve disputes within 90 days, with provisions for further appeals to the High Court and Court of Appeal.