Sugar industry players oppose President Ruto’s importation directive

Stakeholders in the sugar industry have called on President William Ruto to suspend some clauses on the Finance Act, 2023 in order to cushion consumers from the skyrocketing prices of sugar.

Speaking in Kisumu on Thursday, Kenya Sugarcane Plantation and Allied Workers Union (KUSPAW) noted that the introduction of Excise Duty on sugar imports as contained in the Finance Act would cause the price of sugar to shoot up from the current retail price that stands at an average Ksh.240 per kilo.

Cane farmers have expressed displeasure over the importation directive, accusing some elements within the government of deliberately frustrating efforts to revive the sector and use it as a cash cow for personal gain.

The stakeholders from the industry have cautioned the President urging him to ensure that the imports do not work against the local sub-sector and the consumers, a day after President Ruto announced that the country will import sugar from outside the COMESA bloc due to the prevailing shortage.

According to KUSPAW, importation of sugar under the prevailing circumstances would cause an increase in the price of the sweetener, following the introduction of a Ksh.5 excise duty per kilo of imported sugar as stipulated in the Finance Act 2023

“The President can give a directive of exemption of duty of that sugar he has those powers so that is the only option he has if he wants to assist the Kenyan consumers of sugar then that is the directive he has to give,” KUSPAW Secretary General Francis Wangara said.

Sugarcane farmers from the Nyando sugar belt have trashed the importation directive, accusing the government of playing dirty politics in the sector. 

The farmers also accused the Agriculture and Food Authority (AFA) of high-handedness, following its decision to suspend milling operations in the Nyanza and Western belts due to a biting shortage of cane.

“Miwa iko ata saa hii...school fees yetu inatoka wapi, kila kitu inafanya na miwa na sasa kama unasema unataka kufunga hiyo machine kwa mwezi nne, unataka tufanye aje?” Posed Judith Otieno, a cane farmer in Miwani.

The International Sugar Organization had in April published a report indicating a global decline in the production of sugar due to bad weather.

 In the report, the white sugar price index rose to an average of Ksh.94,000 per tonne in April from an average of Ksh.78,000 per tonne in February 2023.