Mutahi Kagwe Defends Sugar Levy: “Research Is the Engine That Will Save Our Industry”
A heated debate has erupted after Agriculture CS Mutahi Kagwe defended the government’s decision to impose a 4% Sugar Development Levy. Appearing before the Senate Committee on Delegated Legislation on Thursday, October 2, Kagwe insisted the levy is not a burden—but a lifeline.
“This Is Not Just About Revenue”—CS Kagwe Makes Bold Case
Kagwe passionately argued that the levy is a strategic intervention aimed at reviving Kenya’s struggling sugar sector.
“Maintaining the rate at 4 per cent is not about burdening the industry,” Kagwe said. “It’s about aligning resources to today’s challenges and opportunities,” he added.
Photo of Supermarket Shelves In Kenya
He emphasized that without investment in research and technology, the industry would collapse under pressure.
“Without research, the industry will not survive,” Kagwe warned.
“We Must Replace Old Cane”—Outdated Varieties Threaten Yields
Kagwe revealed that 97% of Kenya’s sugarcane varieties are outdated. These older types are vulnerable to disease, drought, and produce less sugar.
“Research is the engine for introducing high-yield, climate-resilient varieties,” he explained.
He stressed the urgency of replacing these varieties to boost productivity and reduce reliance on imports.
“KESRETI Will Lead the Way”—Expanded Mandate for Sugar Research
The CS pointed to the Kenya Sugar Research and Training Institute (KESRETI), which now has a broader role under the new Sugar Act 2024. Its mandate includes scientific research, farmer training, and industry capacity-building.
“We must train farmers and millers in modern practices, mechanisation, and value addition,” Kagwe said.
Agriculture Cabinet Secretary Mutahi Kagwe appearing before the Senate on Thursday, October 2, 2025.
He assured the Senate that the levy would fund these critical areas.
“Funds Will Be Distributed Fairly”—Breakdown of the 4% Levy
Kagwe outlined how the levy will be allocated:
- 40% for cane development and productivity enhancement
- 15% for factory development and rehabilitation
- 15% for infrastructure
- 10% for Kenya Sugar Board administration
- 5% for farmer organisations
“This is a comprehensive plan to rescue the sugar sector,” Kagwe stated.
“We Can’t Depend on Imports”—CS Warns of Future Risks
Kagwe cautioned that failure to invest now would worsen factory inefficiencies and deepen Kenya’s dependence on imported sugar.
“We must act now or risk losing our industry,” he urged.
Government’s 4% Sugar Levy Sparks Debate in Senate Over Industry Survival
The Senate Committee will now review submissions before deciding whether to uphold or amend the levy.
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Mutahi Kagwe Defends Sugar Levy: “Research Is the Engine That Will Save Our Industry”
