Kenyans should brace for higher sugar prices following a recent government decision to double the cost of import and export permits. The Agriculture and Food Authority (AFA) has announced that the fee for obtaining or renewing a sugar import permit will increase from KSh 100,000 to KSh 200,000. This change, which also affects the permits for sugar by-products such as bagasse, filter muds, and molasses, is expected to impact consumer prices.
The new fee structure is part of a broader revision of the sugar directorate service charter. Alongside the increase in import permit fees, the cost of molasses permit applications will now range from KSh 300 to KSh 500 per month for up to 10 tonnes. The AFA has also shared the updated timelines for the collection of these licenses once applied for.
“The increase in permit fees is aimed at streamlining the regulatory process and ensuring better management of the sugar industry. While this adjustment may affect prices in the short term, it is intended to support local production and improve overall sector efficiency,” said an AFA spokesperson.
The recent regulatory changes come in the wake of the government lifting a five-month ban on local sugar manufacturing. Following the ban’s end in December 2023, local millers experienced a resurgence, with February 2024 seeing production reach 63,075 metric tonnes—the highest since the ban was lifted.
However, retail prices for sugar have remained relatively stable for now. A recent survey showed that a kilogramme of sugar at Naivas Supermarket costs KSh 175, with a 2kg pack priced at KSh 339 after a KSh 50 discount.
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In addition to the sugar permit fee hikes, the government has introduced new levies on imported cereals. These include a 2% levy on the customs value of imported cereals and a 0.3% levy on cereal exports. Importers will also face increased costs for transport, with a truck of maize costing an extra KSh 20,000 and a truck of rice an additional KSh 50,000.
As the impact of these new fees unfolds, consumers may soon see higher prices for sugar and other staple products.