Kenya’s Sugar Directorate Set for Autonomy After Senate Passes Bill

Kenya’s Sugar Directorate is poised to gain autonomy after the Senate passed the Sugar Bill 2023, setting it on track to become the Kenya Sugar Board once again.

The legislation, which awaits presidential assent, would dismantle the Agriculture and Food Authority (AFA) by allowing several of its founding bodies to regain independence. The move is seen as a win for industry stakeholders who have long called for the Sugar Directorate to be restored as an independent agency with a broader mandate.

If signed into law, the Kenya Sugar Board, dissolved in 2013 when AFA was created, will regain its authority to collect the sugar development levy, a key function it managed before its disbandment. The board will also lead research into new cane varieties to boost productivity in the sector.

Under the new structure, the board’s responsibilities will include regulation, development, and promotion of Kenya’s sugar industry while ensuring equitable access to industry benefits for all participants.

The bill proposes a sugar development levy on domestic sugar, allocating funds across multiple areas: 30% for factory development, rehabilitation, research, and training at the Kenya Sugar Research and Training Institute; 40% for cane development and productivity improvements; and 15% for infrastructure projects in sugar-producing regions, based on production levels.

The Sugar Directorate is the latest agency to seek autonomy from AFA, following the recent re-establishment of the Tea Board of Kenya as an independent body under the Tea Act.

ligadwah@businessdayafrica.org