Uhuru receives sugar report, to re-introduce levy

The sugar levy will now be charged on consumers so as to raise the revenue needed to assist farmers to develop their sugarcane crop.

President Uhuru said this on Monday after receiving the Sugar taskforce report from Agriculture CS Peter Munya and Kakamega Governor Wycliffe Oparanya.

Sugar levy is  among the key recommendations the president has promised to implement.

He said the Government will implement all recommendations of the Taskforce as part of ongoing efforts to revive the sector.

Other key recommendations include privatization of public sugar mills to enhance their efficiency and the enactment of the Sugar Act.

Uhuru told the taskforce co-chaired by Munya and Oparanya that the Government is keen to ensure  Kenyan sugarcane farmers earn decent incomes from their crop.

“As leaders ours is to ensure farmers get maximum returns from their sweat,” he said as received the report.

Other proposed reforms include the gazettement of the sugar sector  regulations including import rules, amendment of the AFA Act and Crops Act inline with the 2010 Constitution, and a review of the taxation regime in the sector to enhance investor incentives.

The taskforce also proposed strict compliance with the COMESA regulations and outlined a raft reforms needed to increase the sugar sector's productivity.

On privatization, Uhuru who was joined by Deputy President William Ruto said the Government doesn’t need to engage in business as its role is in facilitating farmers to get the best seed, fertilizer and other farm implements.

“The private sector will do business while ours is to support farmers interests. Let us look for more innovative ways to achieve this as long as it is done in a transparent manner,” Uhuru said.

He appreciated the taskforce, which was set up on 8th November 2018 for completing its assignment in time and asked that it continues to be in place until the whole process of reviving the sector is complete.

Governor Oparanya said the taskforce is convinced that with the implementation of their report, the country will be able to revive its ailing sugar sector to benefit millions of farmers.

Oparanya who doubles up as Chairperson of the Council of Governors  pointed out that all stakeholders appreciate the efforts being made by the government.