MPs back introduction of 4 per cent sugar development levy

Sugarcane farmers will access low-cost loans should the Sugar Bill currently before the National Assembly become law.

The Bill, which sailed through the Second Reading after receiving approval from Members of the National Assembly, seeks to establish a 4% sugar development levy to bolster cane development and revitalize Kenya's ailing sugar industry.

The Sugar Development Bill by Navakholo MP Emmanuel Wangwe came before the House on Thursday, with the legislators in one voice backing the introduction of the levy to help resuscitate the sector.

Soy MP Kiplagat David, who is also a member of the Agriculture committee, said: “For us to be able to give breath of life to the sugar industry, we need to introduce the sugar development levy. Some members might be asking why the 4 per cent, it is as a result of the agreement we have entered with COMESA where all the sugar imported and that are milled in the country need to be given the same levy of 4 per cent.”

The sugar levy which will be administered by the commodity fund is meant to enable farmers access low-cost credit for cane development, maintain the factories and roads, establishment of the research and training centre.

Once enacted, the Bill will also allow for the establishment of a sugar board to regulate the sugar industry.

Minority Leader Opiyo Wandayi stated: “If this Bill is passed and becomes as Sugar Act, it will bring back the focus. It will be introducing the sugar board will its former powers. It will revive the sugar sector which is a source of livelihood to many Kenyans.”

Members of the National Assembly said although the passage of the Bill will sweeten the bitter-sweet sugar industry, this will not be achieved until the elephant in the room that is the cartel is tamed.

The legislators fell short of mentioning individuals they term as politically powerful barons controlling the whole supply chain.

“We must admit that there are people who have been responsible for the ailment of the sugar sector. It has become a cash cow of the who is who in this country. There are people who have become billionaires in this country by milking the sugar sector dry,” stated Wandayi.

“We must call them out because we know them. Some of them are now in UDA. They used to be in ODM. And they go around with ill gotten wealth.”

Dagoretti South MP John Kiarie said: “Perennial offenders, individuals that we know of who have shut down the star companies and are walking in this country scot free and even running for high offices should be brought to the book and be dealt with.”

The sugar levy was abolished in 2016 due to mismanagement concerns; the Bill now moves to the third reading before it is passed into law.