A worker weighs and packs bags of sugar at Mumias Sugar factory in Kakamega county on February 24, 2015 /FILEThe Kenya Revenue Authority has officially taken over the collection of the Sugar Development Levy from sugar millers and importers, following a directive by the Cabinet Secretary for Agriculture and Livestock Development.
The move is anchored in Legal Notice 113 of 2025 under the Sugar (Sugar Development Levy) Order, and took effect on July 1, 2025.
According to a public notice issued on July 31, KRA announced it will collect a 4 per cent levy on both locally manufactured and imported sugar, as part of efforts to streamline revenue collection and support development within the sugar sector.
Domestic sugar
Sugar millers will be required to remit a levy equivalent to 4 per cent of the ex-factory price of sugar.
The payments must be made by the 10th of the month immediately following the one in which the sugar is manufactured.
To comply, millers will generate payment slips through the iTax system using the tax head "Agency Revenue" and the sub-tax head "Sugar Development Levy."
Payments can be made via KRA agent banks or through mobile money using eCitizen Paybill Number 222222 or by dialling *222#.
Imported sugar
Importers will be charged the levy at the point of importation and Customs declaration.
The 4 per cent levy will be applied to the CIF (Cost, Insurance, and Freight) value of imported sugar, under EAC CET Tariff Headings 12.12, 17.01, and 17.03.
KRA has advised stakeholders to direct any inquiries to the contact centre via [email protected] or phone numbers 020 4 999 999, 0711 099 999, or 0771 099 999.
Debate over sugar imports
The announcement comes amid growing political debate, with opposition figures raising concerns over sugar imports.
Allegations have surfaced regarding a consignment of 25,000 metric tonnes of sugar reportedly arriving at the Port of Mombasa.
"We demand that this consignment, already earmarked, be publicly condemned and destroyed as it is unfit for public consumption," said Wiper party leader Kalonzo Musyoka during a press conference on Thursday.
While the government has yet to issue an official response to the claims, the timing of the levy rollout highlights the increased scrutiny and political attention surrounding sugar imports and safety in Kenya.
