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    Home»Business»Sugar Shock: Govt Slaps 4% Levy as Prices Set to Soar from May 21
    Business

    Sugar Shock: Govt Slaps 4% Levy as Prices Set to Soar from May 21

    Erastus MaleveBy Erastus MaleveMay 13, 2025No Comments3 Mins Read66 Views
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    Kenyans are staring down yet another financial blow as sugar prices are expected to skyrocket starting May 21, following the government’s decision to impose a new 4% Sugar Development Levy (SDL) on both locally produced and imported sugar.

    Agriculture Cabinet Secretary Mutahi Kagwe confirmed the move, saying the levy is aimed at raising billions to revive Kenya’s ailing sugar industry. But for ordinary consumers already struggling under the weight of a high cost of living, the news is anything but sweet.

    FILE PHOTO: Packaged sugar stocked on shelves at Magunas Supermarket in Kitui town. With the new 4% Sugar Development Levy taking effect on May 21, 2025, retail prices , currently averaging KSh 166 per kilo, are expected to climb sharply, straining household budgets across the country.
    Photo | Channel 15 News

    With retail prices currently averaging KSh 166 per kilo, the new levy could push costs well beyond KSh 180 — a sharp spike that importers and retailers have already hinted they’ll pass down to consumers.

    “This is an outright ambush on the Kenyan household,” said consumer rights activist Beatrice Nyongesa. “The government is sugar-coating this as revival, but in reality, it’s the mwananchi who’s getting burned.”

    The funds collected under the SDL are expected to finance sugar research, support farmers, and revamp collapsed milling factories. But skeptics are questioning whether the money will truly reach its intended beneficiaries or be lost in the same corruption scandals that crippled the sector in the first place.

    FILE PHOTO: Agriculture Cabinet Secretary Mutahi Kagwe takes the oath of office at State House on January 17, 2025. Just months into his tenure, Kagwe is now facing public backlash over the government’s move to introduce a 4% Sugar Development Levy , a decision expected to push sugar prices beyond KSh 180 per kilo starting May 21.
    Photo | State House Kenya

    Opposition leaders have called the levy “ill-timed” and “punitive,” demanding that the government first tackle issues of mismanagement, illegal sugar imports, and inefficiencies in sugarcane farming before burdening the public.

    “They are taxing hunger,” said a fiery MP during a press briefing. “You can’t fix the sugar sector by breaking the backs of the poor.”

    Still, government officials insist the SDL is a “necessary pain” and a vital step toward long-term self-sufficiency. “We can’t continue importing sugar endlessly. This levy is about rebuilding from within,” CS Kagwe defended.

    As the deadline looms, supermarkets are already seeing increased purchases, with some Kenyans rushing to stockpile before the hike kicks in. Analysts predict further inflation in processed foods that rely on sugar, such as bread, soft drinks, and baked goods.

    With fuel prices, power tariffs, and now sugar on the rise, Kenyans are asking one thing: how much more can they take?

    Government Ministry of Agriculture Stat3 State Sugar Levy
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    Erastus Maleve
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    Erastus Maleve is a Daystar University graduate with a BA in Electronic Media. He began his career as a newsreader at Ghetto Radio 89.5 before serving as a producer and radio host at Radio Thome 88.1 FM in Kitui for four years. Erastus further honed his skills with an attachment at BBC East Africa Correspondence. He is the founder of Channel 15 News, where he leads news coverage, social media management, and digital marketing. Well-versed in event organizing, Erastus combines his media expertise with a keen understanding of social media dynamics to shape local and national narratives.

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