If you thought a packet of sugar is too costly, then expect it to get worse as you will bear an extra levy.
The sugar levy will now be charged on consumers to raise the revenue needed to assist farmers to develop their sugarcane crop.
President Uhuru Kenyatta said this on Monday after receiving the Presidential Taskforce on the Sugar Sector from Agriculture CS Peter Munya and Kakamega Governor Wycliffe Oparanya.
The sugar levy is among the key recommendations Uhuru promised to implement.
“The sugar levy will be charged on consumers so as to raise the revenue needed to assist farmers to develop their sugarcane crop. As leaders ours is to ensure farmers get maximum returns from their sweat,” Uhuru said.
The Sugar task force was formed on November 8, 2018 and is co-chaired by Munya and Governor Oparanya.
“The government is keen to ensure Kenyan sugarcane farmers earn a decent income from their crop. We will implement the recommendations of the sugar task force as part of the ongoing efforts to revive the sector,” Uhuru said.
The task force also proposed the privatisation of public sugar mills to enhance their efficiency and the enactment of the Sugar Act to bring order in the sector.
“The government doesn’t need to engage in business as its role is in facilitating farmers to get the best seed, fertiliser and other farm implements,” Uhuru said.
“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.”
Other proposed reforms include the gazettement of the sugar sector regulations. They include the import rules, amendment of the AFA Act and Crops Act in line with the 2010 Constitution, and a review of the taxation regime in the sector to enhance investor incentives.
The task force further proposed strict compliance with the Comesa regulations and outlined reforms needed to increase the sugar sector's productivity.
“The task force is convinced that with the implementation of the report, the country will be able to revive its ailing sugar sector to benefit millions of farmers,” Oparanya said.
Other officials who attended the launch included Deputy President William Ruto, Cabinet secretaries Ukur Yatani (Treasury) and governors Anyang' Nyong’o (Kisumu) and Wycliffe Wangamati (Bungoma), who are members of the task force.
