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

Burundians Mrudi Kwenu, Hizo Chai Zitauzwa Na Wakenya ~ President Ruto Last Warning To Foreigners,,,,Watch Out

September 9, 2026

Kisii village in frenzy as ‘Virgin Mary’ image ‘appears’ on a kitchen wall,,,Watch

September 8, 2026

Kenyans Attack Burundians And Loot Their Businesses After Ruto’s Ban On Foreign Traders,,Watch

September 8, 2026

Ruto Dares Kenyans Over New Police Uniforms Amid Criticism

September 8, 2026

Kenya Met Lists Counties Set to Receive Rain Over Next Five Days

September 8, 2026

Breaking: Ruto & 12 CSs Announce Fresh Appointments to Govt

September 8, 2026

Breaking: Senior DCI Boss Loses Wife

September 8, 2026

Eric Omondi Arrested

September 7, 2026

Treasury Appoints National Infrastructure Fund CEO

September 7, 2026

Breaking: President’s Husband Dies

September 7, 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

Burundians Mrudi Kwenu, Hizo Chai Zitauzwa Na Wakenya ~ President Ruto Last Warning To Foreigners,,,,Watch Out

September 9, 2026

Kisii village in frenzy as ‘Virgin Mary’ image ‘appears’ on a kitchen wall,,,Watch

September 8, 2026

Kenyans Attack Burundians And Loot Their Businesses After Ruto’s Ban On Foreign Traders,,Watch

September 8, 2026

Ruto Dares Kenyans Over New Police Uniforms Amid Criticism

September 8, 2026

Kenya Met Lists Counties Set to Receive Rain Over Next Five Days

September 8, 2026

Breaking: Ruto & 12 CSs Announce Fresh Appointments to Govt

September 8, 2026
Leave A Reply Cancel Reply

Recent News

Burundians Mrudi Kwenu, Hizo Chai Zitauzwa Na Wakenya ~ President Ruto Last Warning To Foreigners,,,,Watch Out

September 9, 2026

Kisii village in frenzy as ‘Virgin Mary’ image ‘appears’ on a kitchen wall,,,Watch

September 8, 2026

Kenyans Attack Burundians And Loot Their Businesses After Ruto’s Ban On Foreign Traders,,Watch

September 8, 2026

Ruto Dares Kenyans Over New Police Uniforms Amid Criticism

September 8, 2026

Kenya Met Lists Counties Set to Receive Rain Over Next Five Days

September 8, 2026

Breaking: Ruto & 12 CSs Announce Fresh Appointments to Govt

September 8, 2026

Breaking: Senior DCI Boss Loses Wife

September 8, 2026

Eric Omondi Arrested

September 7, 2026

Treasury Appoints National Infrastructure Fund CEO

September 7, 2026

Breaking: President’s Husband Dies

September 7, 2026
Popular News

Yield-Bearing Crypto Collateral: Double-Dip Loan Strategies

July 21, 2025

DCI Seeks Public Assistance in Identifying Looters During Anti-Finance Bill Protests

July 2, 2024

5 Startups Shaping Kenya’s Web3 Landscape

April 4, 2025

Police Disperse Students With Tear Gas During Protest in Nairobi CBD

February 26, 2025

Martha Koome’s Emotional Speech as She Visits Raila’s Grave in Bondo

November 1, 2025

How Blockchain is Transforming Renewable Energy Financing and Investment

April 2, 2025

US Senator Warns of Chinese Influence in Africa After Trump Shuts Down USAID

February 4, 2025

Breaking: Two University Students Arrested for Posing as EACC Directors and Scamming the Public in Bungoma – Details Below

January 27, 2025

Pastor Dorcas Responds to Accusations of Controlling Her Husband Rigathi Gachagua

July 23, 2025

Step-by-Step Procedure for Updating Your KPLC Token Meter Before August Deadline

June 13, 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.