Kenya's industrial sector received a boost with eight local firms gaining approval to import 43,000 metric tonnes of sugar under an East Africa Community (EAC) tax scheme. Announced by Deng Alor Kuol, Chairperson of the EAC Council of Ministers, this move is geared towards supporting the production of various industrial products like soda, milk drinks, and chocolate. The EAC-wide duty remission scheme allows Kenya's sugar-based product manufacturers to rely on imported industrial sugar, attracting a duty rate of 10 percent.
Among the recipients of clearance, Coca-Cola Beverages Kenya Limited secured approval to import 20,000 tonnes for carbonated drinks and juice. Equator Bottlers and Trufoods Limited also received clearance for varying quantities used in jams, sauces, spices, and chocolate. However, this clearance process entails strict regulations, including registration with the sugar directorate and engagement with suppliers, reflecting the intricacies of importing refined sugar under the EAC remission scheme.
Meanwhile, sugarcane farmers have criticized the Agriculture and Food Authority (AFA), alleging collusion with cartels that exploit farmers. The farmers' frustrations stem from reduced sugarcane buying prices, prompting a legal intervention to halt price increases and sugar imports. Simon Wesechere of the Kenya National Federation of Sugarcane Farmers highlighted the challenges faced by farmers, including production costs exceeding market prices, leading to crop abandonment and factory shutdowns due to cane shortages.
