Kenyans are in for bad news as the government has increased the excise duty on imported sugar, leading to a rise in sugar prices. This increase, which was recently signed into law by President William Ruto through the Tax Laws Amendment Act, 2024, will raise the excise duty on imported sugar from 5% to 7.5%.
This move is expected to make sugar more expensive, which will be a blow to consumers who had just begun to enjoy lower sugar prices after a period of record-high prices. According to the Kenya National Bureau of Statistics (KNBS), sugar prices had dropped by an average of 27.4% over the past year. Last month, a kilogram of sugar was selling for an average of Sh158.23, down from Sh217.96 in November 2023.
However, the new excise duty will reverse this trend, causing prices to rise once again. Sugar is an essential product that is widely used in households and various industries, including pharmaceuticals. This means that a rise in sugar prices will not only affect the cost of sugar itself but also the prices of many other products that rely on it.
In addition to the excise duty increase, the government recently introduced a 4% Sugar Development Levy on imported sugar. This levy, introduced through the Sugar Act of 2022, is intended to fund the Kenya Sugar Board, the Kenya Sugar Research Institute (KSRI), and support local sugar growers.
Despite efforts to increase local sugar production, Kenya still heavily depends on sugar imports to meet demand. With these new taxes, consumers will likely face higher costs, and the impact will be felt across many sectors.
By Nation