Additional Taxes on Sugar Likely With New Taskforce Recommendations

President Uhuru Kenyatta has said the Government will implement recommendations of the sugar Taskforce as part of ongoing efforts to revive the sector.

Kenyatta made the assurance today at State House, Nairobi when he received the report of the Presidential Taskforce on the Sugar Sector.

President Kenyatta told the taskforce co-chaired by Agriculture CS Peter Munya and Kakamega Governor Wycliffe Oparanya that the Government is keen to ensure Kenyan sugarcane farmers earn decent incomes from their crop.

See: Mumias Sugar Fires All Employees

“As leaders, ours is to ensure farmers get maximum returns from their sweat,” the President said as received the report whose key recommendations include the re-introduction of the sugar levy, privatization of public sugar mills to enhance their efficiency and the enactment of the Sugar Act.

The sugar levy will be charged on consumers so as to raise the revenue needed to assist farmers to develop their sugarcane crop.

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President Kenyatta receives the report from Governor Oparanya. [Photo/PSCU]

Other proposed reforms include the gazettement of the sugar sector regulations including import rules, amendment of the AFA Act and Crops Act in line with the 2010 Constitution, and a review of the taxation regime in the sector to enhance investor incentives.

The task force also proposed strict compliance with the COMESA regulations and outlined a raft of reforms needed to increase the sugar sector’s productivity.

Also read: Sugar industry faces extinction thanks to proposed new rules

On privatization, President Kenyatta who was joined by Deputy President William Ruto said the government doesn’t need to engage in business as its role is in facilitating farmers to get the best seed, fertilizer and other farm implements.

“The private sector will do business while ours is to support farmers’ interests. Let us look for more innovative ways to achieve this as long as it is done in a transparent manner,” the President said.

The Head of State thanked the task force, which was set up on 8th November 2018 for completing its assignment in time and asked that it continues to be in place until the whole process of reviving the sector is complete.

Oparanya said the task force is convinced that with the implementation of their report, the country will be able to revive its ailing sugar sector to benefit millions of farmers.

The Kakamega Governor who is also the Chairperson of the Council of Governors thanked the President for his commitment to the revival of the sugar sector pointing out that all stakeholders appreciate the efforts being made by the government.

Cabinet Secretaries Peter Munya (Agriculture) and Ukur Yattani (National Treasury), as well as Governors Anyang Nyong’o (Kisumu) and Wycliffe Wangamati (Bungoma) who are members of the task force, also attended the State House meeting.

Read >> Even on its Death Bed, Mumias Sugar is Haunted by Creditors

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