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

Teachers Declare Support for Ruto’s 2027 Re-Election Bid

January 26, 2026

KPLC Lists Areas in 12 Counties to Experience Power Interruptions on Tuesday, January 27

January 26, 2026

Why the Govt Will Transfer Some Grade 10 Students to Other Schools

January 26, 2026

Students Hospitalized as Fire Razes Down Dormitories 

January 26, 2026

Guinness World Records Officially Confirms Truphena Muthoni’s 72-Hour Tree-Hugging Marathon

January 26, 2026

Breaking: DJ Krowbar’s Wife Joyce Wanjiru Dies After Brave Battle

January 26, 2026

How Bitcoin-Backed Loans Work in 2025

January 26, 2026

Best Altcoins to Borrow Against for Maximum Returns

January 26, 2026

How to Use Bitcoin as Collateral for High-Yield Loans

January 26, 2026

KUCCPS Sets Date for Opening of University and College Placement Portal

January 26, 2026
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

Teachers Declare Support for Ruto’s 2027 Re-Election Bid

January 26, 2026

KPLC Lists Areas in 12 Counties to Experience Power Interruptions on Tuesday, January 27

January 26, 2026

Why the Govt Will Transfer Some Grade 10 Students to Other Schools

January 26, 2026

Students Hospitalized as Fire Razes Down Dormitories 

January 26, 2026

Guinness World Records Officially Confirms Truphena Muthoni’s 72-Hour Tree-Hugging Marathon

January 26, 2026

Breaking: DJ Krowbar’s Wife Joyce Wanjiru Dies After Brave Battle

January 26, 2026
Leave A Reply Cancel Reply

Recent News

Teachers Declare Support for Ruto’s 2027 Re-Election Bid

January 26, 2026

KPLC Lists Areas in 12 Counties to Experience Power Interruptions on Tuesday, January 27

January 26, 2026

Why the Govt Will Transfer Some Grade 10 Students to Other Schools

January 26, 2026

Students Hospitalized as Fire Razes Down Dormitories 

January 26, 2026

Guinness World Records Officially Confirms Truphena Muthoni’s 72-Hour Tree-Hugging Marathon

January 26, 2026

Breaking: DJ Krowbar’s Wife Joyce Wanjiru Dies After Brave Battle

January 26, 2026

How Bitcoin-Backed Loans Work in 2025

January 26, 2026

Best Altcoins to Borrow Against for Maximum Returns

January 26, 2026

How to Use Bitcoin as Collateral for High-Yield Loans

January 26, 2026

KUCCPS Sets Date for Opening of University and College Placement Portal

January 26, 2026
Popular News

Details of X Influencer’s Last Phone Call Before His Mysterious Death in Police Custody

June 9, 2025

Government to Burn Ksh8 Billion Worth of Meth Seized in Mombasa Publicly

October 27, 2025

Loan Calculator Explained: Understand How Loans Work and Make Better Financial Choices

August 6, 2025

Gen Z in Eldoret Celebrate Removal of CS Kipchumba Murkomen with Cake Cutting Ceremony

July 12, 2024

Drama Erupts as Two Schools Fight Over Headteacher

January 23, 2025

Faith Kipyegon’s Paris Olympics 5000m Silver Medal Reinstated

August 6, 2024

Mwengi Mutuse has bought a helicopter in preparation for the 2027 Makueni gubernatorial seat. Watch Out

October 27, 2024

Two MPs Launch New Attack on Ruto Amid State Jobs

February 8, 2025

DCI Summons Four Bloggers Over Alleged Threats to Attack Gachagua

November 13, 2025

A bus travelling to Mombasa was blocked by Gen Zs at Kitui Roundabout as it had no rear tyre and was tied with ropes. They wanted to burn it but the driver ran away. Watch

August 21, 2024
Facebook X (Twitter) Instagram Pinterest
  • Home
  • General News
  • Trending News
  • Advertise With Us
  • About Us
  • Contact Us
  • Privacy Policy
© 2026 News Hub. Designed by News Hub.

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