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

Govt Calls on Kenyans to Submit 2026 Finance Bill Ideas​

December 9, 2025

Deputy IG’s Nephew Charged for Fake Police Recruitment Scheme

December 9, 2025

CCTV Footage Reveals Final Moments of 12-Year-Old Girl Found Murdered in Nairobi Estate

December 9, 2025

Rigathi Gachagua Blames President Ruto After Cow Disrupts His Rally in Mwiki

December 9, 2025

Kipchumba Murkomen Warns Gen Zs May Avoid Marriage, Urges Parents to Pray: “Tusipochunga Watakataa”

December 9, 2025

Several Dead in Mombasa Road Accident

December 8, 2025

Eugene Wamalwa Welcomes Khalwale to DAP-K After UDA Fallout

December 8, 2025

Kenya Leads Africa in Private Sector Growth, Leaving Giants Behind

December 8, 2025

Gachagua Details Plot to End Ruto’s Influence in Nairobi

December 8, 2025

Fresh Cracks Loom in Opposition as DCP MP Confronts Matiang’i, Jubilee

December 8, 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

Govt Calls on Kenyans to Submit 2026 Finance Bill Ideas​

December 9, 2025

Deputy IG’s Nephew Charged for Fake Police Recruitment Scheme

December 9, 2025

CCTV Footage Reveals Final Moments of 12-Year-Old Girl Found Murdered in Nairobi Estate

December 9, 2025

Rigathi Gachagua Blames President Ruto After Cow Disrupts His Rally in Mwiki

December 9, 2025

Kipchumba Murkomen Warns Gen Zs May Avoid Marriage, Urges Parents to Pray: “Tusipochunga Watakataa”

December 9, 2025

Several Dead in Mombasa Road Accident

December 8, 2025
Leave A Reply Cancel Reply

Recent News

Govt Calls on Kenyans to Submit 2026 Finance Bill Ideas​

December 9, 2025

Deputy IG’s Nephew Charged for Fake Police Recruitment Scheme

December 9, 2025

CCTV Footage Reveals Final Moments of 12-Year-Old Girl Found Murdered in Nairobi Estate

December 9, 2025

Rigathi Gachagua Blames President Ruto After Cow Disrupts His Rally in Mwiki

December 9, 2025

Kipchumba Murkomen Warns Gen Zs May Avoid Marriage, Urges Parents to Pray: “Tusipochunga Watakataa”

December 9, 2025

Several Dead in Mombasa Road Accident

December 8, 2025

Eugene Wamalwa Welcomes Khalwale to DAP-K After UDA Fallout

December 8, 2025

Kenya Leads Africa in Private Sector Growth, Leaving Giants Behind

December 8, 2025

Gachagua Details Plot to End Ruto’s Influence in Nairobi

December 8, 2025

Fresh Cracks Loom in Opposition as DCP MP Confronts Matiang’i, Jubilee

December 8, 2025
Popular News

JCC Announces Memorial Services for Late Bishop Allan Kiuna

July 10, 2024

Chaos Erupts in Machakos Assembly as MCAs Fight Over Leadership Changes

June 10, 2025

Suspected Goons Arrested After MP Kaluma Attack at Agoro Sare

November 28, 2025

KDF Officer Stonned to Death After Boda Boda Fare Dispute in Mombasa

January 13, 2025

Teacher by day, Security Guard by Night: The Touching Story of Fabian Kiria Kaburu…Read More

September 19, 2024

Gachagua Claims Ruto Plans to Postpone 2027 Elections

April 6, 2025

Govt Breaks Silence After Several Official Websites Hacked

November 18, 2025

“Resign Immediately or Be Impeached”, Opposition Tells Murkomen

July 1, 2025

Finally Pres Ruto Forgives Gachagua after Raila Family Endorsed Kalonzo for President 2027! Watch Out

November 9, 2025

Didmus Barasa Escorted back to his Chopper and Asked to Leave Before they vandalise it na auliwe mbele ya watu. Watch Video

July 14, 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.