Kagwe tasks KRA to collect Sugar Development Levy
Move is aimed at generating money for the development, promotion and regulation of sugar industry for the benefit of the sugarcane growers and other stakeholders in the sugar sub-sector
Agriculture Cabinet Secretary Mutahi Kagwe has appointed Kenya Revenue Authority (KRA) as the “collector” of the Sugar Development Levy.
The levy was imposed through Legal Notice 113 of 2025, the Sugar (Sugar Development Levy) Order, 2025, on millers and importers of sugar, effective July 1.
For sugar produced locally, the levy shall be payable by every miller at the rate of 4 per cent of the ex-factory price by the 10th day of the month immediately following the month when the sugar is manufactured.
In a notice issued on Thursday, KRA Commissioner General Humphrey Wattanga Mulongo said the millers will generate a payment slip through the iTax system under the tax head “Agency Revenue” and tax sub-head “Sugar Development Levy”, and make payments at KRA agent banks or via mobile money through eCitizen Paybill Number 222 222 or by dialling *222#.
For imported sugar, Mulongo said the levy shall be payable at the time of importation and declaration through Customs system, iCMS at the rate of 4 per cent of the cost, insurance and freight (CIF) value of each consignment of imported sugar falling under EAC CET Tariff Headings 12.12, 17.01 and 17.03.
Collection of levy on domestic and imported sugar is aimed at generating money for the development, promotion and regulation of sugar industry for the benefit of the sugarcane growers and other stakeholders in the sugar sub-sector.
