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Kenyans will be forced to dig more into their pockets to buy sugar, even as the 4% sugar development levy takes effect.

The Ministry of Agriculture and Livestock Development announced the implementation of the new tax starting July 1, 2025.

In a public notice released on Tuesday, July 8, Principal Secretary (PS), State Department for Agriculture, Paul Rono, said the levy applies to all millers and individuals involved in sugar importation.

"We would like to inform members of the public that the Sugar Development Levy is now in effect from July 1, 2025. The levy is payable by every miller and every person who imports sugar at the rate of 4% of the ex-factory price for domestic sugar and 4% of the cost, insurance, and freight (CIF) value of each consignment of imported sugar," read the notice part.

The PS noted that the levy should be remitted by the 10th of the month immediately following the month when the domestic sugar is sold and by the 10th day of the month immediately following the month when the sugar was imported.

Agriculture Cabinet Secretary Mutahi Kagwe appointed the Kenya Revenue Authority (KRA) as the collection agent for the levy.

The 4% sugar development levy came at a time when Kenyans are experiencing a sharp rise in the prices of sugar.

According to the Kenya National Bureau of Statistics (KNBS), the retail prices of sugar have increased from an average of KSh 168.59 per kilogramme in the past 12 months to KSh 184.13 in June 2025.

This contributed to high inflation, which stood at 3.8% in the same month under review.

A spot check by indicated that a kilogramme of sugar retailed at KSh 180 while 2 kg of sugar retailed at an average of KSh 355 across different supermarkets and shops in the country.

President William Ruto assented to the Sugar Act of 2024, which introduced a 4% levy on sugar development.

A report released in April 2025 anticipated an increase in retail prices at the start of the manufacturing year (MY) 2025/26, citing tight supply due to the closure of local mills for annual maintenance.

The report attributed the increase in prices to a 19.8% decrease in production for the year under review to 650,000 metric tons, down from 810,000 metric tons reported in the manufacturing year 2024/25.

Source: TUKO.co.ke