KRA Begins Collection of Sugar Development Levy

The Kenya Revenue Authority (KRA) has officially commenced the collection of the Sugar Development Levy from both millers and importers of sugar, following the gazettement of Legal Notice No. 113 of 2025. The levy, which came into effect on 1st July 2025, is in accordance with the Sugar (Sugar Development Levy) Order, 2025.

In a public notice dated 31st July 2025, KRA confirmed that it had been appointed by the Cabinet Secretary for Agriculture and Livestock Development to act as the designated collector of the levy. The move is part of the government’s broader efforts to strengthen the sugar sector through improved regulation and resource mobilization for development programs.

Levy Structure

According to the order, domestic sugar millers are required to remit the levy at a rate of 4% of the ex-factory price. This payment must be made by the 10th day of the month following the month of sugar production.

Millers will be expected to generate payment slips through the iTax platform under the tax head “Agency Revenue” and sub-head “Sugar Development Levy.” Payments can then be made at designated KRA agent banks or through the eCitizen mobile platform, using Paybill Number 222222 or by dialling USSD code *222#.

On the other hand, importers of sugar will pay the levy at the time of importation and declaration via the Customs system (iCMS). The levy is also charged at 4%—based on the cost, insurance, and freight (CIF) value of imported sugar—falling under EAC Common External Tariff Headings 12.12, 17.01, and 17.03.

KRA Contact and Support

KRA has urged all concerned parties to ensure compliance and seek clarification where needed. For additional details, stakeholders can reach out to the authority via the contact centre numbers (020) 4 999 999 or 0711 099 999, or through email at callcentre@kra.go.ke.

The notice comes amid heightened government focus on revitalizing the sugar industry and enhancing fiscal discipline within the sector. KRA reiterated its commitment to efficient tax administration and encouraged all sugar stakeholders to comply with the new directive to avoid penalties.