Kenya grants sugar import permits to boost manufacturing, stabilize production costs, and support growth in key industrial sectors.
KENYA – Kenya has authorized ten companies to import a total of 208,600 tonnes of sugar for industrial use under the East African Community (EAC) duty remission scheme.
The move aims to support the country’s manufacturing sector by lowering production costs for food and beverage producers.
The EAC duty remission program allows companies to import raw materials at a reduced duty rate of 10%, compared to the standard 25%, provided the sugar is used strictly for industrial purposes.
By lowering input costs, the government seeks to enhance the competitiveness of local manufacturers and reduce reliance on finished imports.
The ten companies granted approval include Mombasa Sugar Refinery, Coca-Cola Beverages Kenya, Equator Bottlers, Trufoods Limited, Jetlak Foods Limited, Devyani Food Industries, Kenafric Beverages, Bidco Africa, Njoro Canning Factory, and Al-Mahra Industries.
These firms plan to use the imported sugar in a variety of products, ranging from sodas and juices to sauces and jams.
All approved companies must be registered with the Sugar Directorate and are required to use the imported sugar exclusively for manufacturing purposes, in line with the conditions of the remission scheme.
Industry experts believe the decision will help reduce production costs for many essential products, potentially stabilizing prices for consumers. It is also viewed as part of broader government efforts to strengthen domestic industries and encourage value addition within the country.
The approval comes even as Kenya reported a rise in local sugar production. According to a Kenya Sugar Board (KSB) report, sugar production increased by 5% in February to 76,758 tonnes, up from 73,019 tonnes in January.
This rise was driven by the availability of mature sugarcane with higher sugar content.
However, the total amount of sugarcane crushed by mills slightly declined to 816,632 tonnes from 827,482 tonnes.
KSB CEO Jude Chesire noted that despite the lower crushing volumes, the higher quality of the sugarcane resulted in improved sugar yields for millers.
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