Close Menu
News HubNews Hub
  • Home
  • General News
  • Breaking News
  • Trending
  • Business
  • Entertainment
  • Politics
  • Health
  • Celebrities
  • Economy
  • Sports
Trending Now

NIS Director Noordin Haji and Speaker Moses Wetangula Among 105 Lawyers Seeking Senior Counsel Title

October 9, 2025

KUCCPS Issues Directive to Universities and Colleges Ahead of KCSE Exams

October 9, 2025

Residents Flee, Businesses Closed as Boda Boda Riders Clash

October 9, 2025

Babu Owino’s Message to Gachagua and Opposition Leaders Ahead of 2027

October 9, 2025

Kenyatta University Hospital Clarifies Reports of Mass Recruitment at the Facility

October 9, 2025

Obinna Takes Action After Accusations of Causing Shalkido’s Death

October 9, 2025

Kenyans to Start Earning Money for Watching Social Media Ads – Itumbi

October 9, 2025

Court Frees Man Found Trespassing Parliament, Claims to Be President Ruto’s Son

October 9, 2025

Government Clarifies CBA Stalemate as Lecturers’ Strike Intensifies

October 8, 2025

Panic as 33-Seater Bus Plunges Into River Along Waiyaki Way at Waruku

October 7, 2025
Facebook X (Twitter) Instagram
Facebook X (Twitter) Instagram
News HubNews Hub
WhatsApp Facebook Advertise With Us
  • Home
  • General News
  • Breaking News
  • Trending
  • Business
  • Entertainment
  • Politics
  • Health
  • Celebrities
  • Economy
  • Sports
News HubNews Hub
Breaking News

Agriculture CS Mutahi Kagwe Defends New 4% Sugar Levy, Says Funds Will Boost Research and Revive Industry

Journalist BenedictBy Journalist BenedictOctober 2, 2025No Comments3 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Share
Facebook Twitter LinkedIn Pinterest Email

Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe has firmly defended the government’s decision to introduce a 4% Sugar Development Levy, clarifying that the tax is not just for revenue collection but a strategic investment in reviving the struggling sugar industry.

Speaking before the Senate Committee on Delegated Legislation on Thursday, October 2, 2025, Kagwe argued that the levy is necessary to fund critical research, modern technology, and farmer training.

“Keeping the levy at 4 per cent is not about increasing the financial burden,” he said. “It is about matching resources with today’s level of challenges and opportunities. Without proper investment in research, innovation, and technology, the sugar industry will collapse.”


Who Will Pay the Levy?

The Ministry of Agriculture had earlier announced that the levy will be paid by:

  • All local sugar millers – at 4% of the ex-factory price
  • All sugar importers – at 4% of the Cost, Insurance, and Freight (CIF) value of each shipment

Some millers have protested the move, claiming it will increase operational costs. However, Kagwe countered that the benefits of the levy far outweigh the short-term financial concerns.


Levy to Fund Research, Modern Farming & Factory Upgrades

The CS emphasized that much of the money will be channelled through the Kenya Sugar Research and Training Institute (KESRETI), whose mandate was expanded under the Sugar Act 2024.

KESRETI will now be responsible not only for scientific research but also for:

  • Training farmers on modern farming practices
  • Introducing new high-yield, climate-resilient cane varieties
  • Supporting millers with mechanisation and value addition

Kagwe revealed that 97% of Kenya’s current sugarcane varieties are outdated, highly vulnerable to disease, drought, and low productivity.

“Research is the engine that will give us better cane varieties that produce more sugar and survive harsh climates,” he stressed.


How the 4% Levy Will Be Shared

According to Kagwe, the levy funds will be allocated as follows:

Allocation AreaPercentage Share
Cane development & productivity40%
Factory development & rehabilitation15%
Infrastructure15%
Kenya Sugar Board administration10%
Farmer organisations5%
Research & training (KESRETI)Remaining share under core programmes

He warned that failure to invest now would lead to even poorer yields, inefficient factories, and higher dependence on imported sugar — a risk that could threaten Kenya’s food security.


Senate to Decide Fate of the Levy

With submissions now presented by the Ministry and other stakeholders, the Senate Committee will review the matter and determine whether the 4% tax will proceed as proposed or be adjusted.

Join Government Official WhatsApp Channel To Stay Updated On time
https://whatsapp.com/channel/0029VaWT5gSGufImU8R0DO30

Follow on WhatsApp Follow on Facebook
Share. WhatsApp Facebook Twitter LinkedIn Email Copy Link
Journalist Benedict

Related Posts

NIS Director Noordin Haji and Speaker Moses Wetangula Among 105 Lawyers Seeking Senior Counsel Title

October 9, 2025

KUCCPS Issues Directive to Universities and Colleges Ahead of KCSE Exams

October 9, 2025

Residents Flee, Businesses Closed as Boda Boda Riders Clash

October 9, 2025

Babu Owino’s Message to Gachagua and Opposition Leaders Ahead of 2027

October 9, 2025

Kenyatta University Hospital Clarifies Reports of Mass Recruitment at the Facility

October 9, 2025

Obinna Takes Action After Accusations of Causing Shalkido’s Death

October 9, 2025
Leave A Reply Cancel Reply

Recent News

NIS Director Noordin Haji and Speaker Moses Wetangula Among 105 Lawyers Seeking Senior Counsel Title

October 9, 2025

KUCCPS Issues Directive to Universities and Colleges Ahead of KCSE Exams

October 9, 2025

Residents Flee, Businesses Closed as Boda Boda Riders Clash

October 9, 2025

Babu Owino’s Message to Gachagua and Opposition Leaders Ahead of 2027

October 9, 2025

Kenyatta University Hospital Clarifies Reports of Mass Recruitment at the Facility

October 9, 2025

Obinna Takes Action After Accusations of Causing Shalkido’s Death

October 9, 2025

Kenyans to Start Earning Money for Watching Social Media Ads – Itumbi

October 9, 2025

Court Frees Man Found Trespassing Parliament, Claims to Be President Ruto’s Son

October 9, 2025

Government Clarifies CBA Stalemate as Lecturers’ Strike Intensifies

October 8, 2025

Panic as 33-Seater Bus Plunges Into River Along Waiyaki Way at Waruku

October 7, 2025
Popular News

The Role of GPUs in Cryptocurrency Mining

March 8, 2025

How to Buy Gold with Crypto: A Step-by-Step Guide

March 18, 2025

Breaking: Raila’s Aide Dies​​

April 2, 2025

Larry Madowo Alleges Nairobi Politician Offered Ksh100K to Have Him Attacked

July 7, 2025

Government Offices Face Possible Shutdown as Civil Servants and Doctors Plan Strike

March 15, 2025

High-Frequency Trading (HFT): Definition, How It Works, and Example

February 8, 2025

Charlene Ruto Appeals to Gen Z for Dialogue Amidst Ongoing National Protests

July 4, 2024

Governor Sakaja Receives Warm Welcome at Toi Market After a Hostile Reception During a Previous Visit

August 10, 2024

Shock as RUTO Bribes Kikuyus with Mchele Nyama so as not to heckle him but Still they Rejected him! Watch

December 13, 2024

Wycliffe Oparanya : Government to come up with a tracking system to find 19 million Hustler Fund defaulters. We are coming for you. Watch

August 24, 2024
Facebook X (Twitter) Instagram Pinterest
  • Home
  • General News
  • Trending News
  • Advertise With Us
  • About Us
  • Contact Us
  • Privacy Policy
© 2025 News Hub. Designed by News Hub.

Type above and press Enter to search. Press Esc to cancel.