President Ruto signs Bill aimed at reviving sugar sector into law
President William Ruto on Friday assented to
the Sugar Bill 2022, aiming to revitalise the sugar sector.
The Bill will address the challenges that
have crippled the once vibrant and profitable industry, a vital source of
livelihood for many farmers.
The Bill will enable the re-establishment of
the Kenya Sugar Board, the creation of the Kenya Sugar Research and Training
Institute, and the implementation of the Sugar Development Levy.
These measures are set to strengthen the
industry by boosting production, enhancing milling efficiency, aligning
capacity with cane supply, promoting value addition, and providing critical
funding to benefit all stakeholders.
The Kenya Sugar Board will be empowered to
regulate, develop, and promote the sugar industry, coordinate stakeholders,
participate in policy-making, and collaborate with government and research
institutions.
The Board will also oversee sugar trade,
advise growers, regulate pricing, license mills, and conduct market
surveillance.
Additionally, it will appoint qualified crop
inspectors to enforce regulations within the sector.
Structured funding for the Kenya Sugar Board
will come from National Assembly allocations and a Sugar Development Levy,
capped at 4% of domestic sugar value and CIF of imported sugar.
Allocations include 15% for factory
development, 15% for research, 40% for cane productivity, 15% for
infrastructure in sugarcane-producing regions, 10% for Board administration,
and 5% for sugarcane farmers’ organisations.
The establishment of the Kenya Sugar Research
and Training Institute will advance research, innovation, and access to sugar
technologies, governed by a 9-member Board chaired by an appointee of the
Cabinet Secretary.
For dispute resolution, a 5-member Sugar
Arbitration Tribunal will be established, chaired by a judge-qualified
individual, to resolve sector disputes within 90 days, with further appeals
permitted to the High Court and Court of Appeal.
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