Some 10 Kenyan firms have been cleared to import 208,600 tonnes of sugar under a special East Africa Community (EAC) tax arrangement for making industrial products including tomato sauce, soda and juices.
Sugar-based products made in Kenya are manufactured using industrial sugar imported under the EAC-wide duty remission scheme which attracts a preferential 10 percent duty.
“A remission of import duty is approved for Kenya for the following manufacturers on the specified quantities of sugar for industrial use, to apply a duty rate of ten percent for 12 months,” EAC Council of Ministers Chairperson Beatrice Askul said in a notice.
Mombasa Sugar Refinery Limited secured the largest share of imports with 165,000 tonnes earmarked for its production of refined white sugar, both food grade and pharmaceutical grade.
Coca-Cola Beverages Kenya got a clearance to bring in 20,000 tonnes for its production of carbonated soft drinks. Its regional bottling partner, Equator Bottlers Limited, will bring in 10,000 tonnes for the same use, pinpointing the scale of demand from these beverage producers.
Devyani Food Industries (Kenya) Limited, known for its dairy-based and frozen offerings, has been allowed to import 2,000 tonnes for use in yoghurt, flavoured milk, milk drinks, soft drinks, and ice cream.
Snack and condiment maker Trufoods Limited has been cleared to ship in 5,000 tonnes to support its wide portfolio, from jams and ketchups to powdered cocoa, salad dressings, and syrups. The company is expected to benefit from the lower import cost as it ramps up production of household staples.
Jetlak Foods Limited, which focuses on juices, has been approved to bring in 3,000 tonnes, while Bidco Africa, a dominant player in the energy and soft drinks sector, will import 1,000 tonnes for its carbonated and juice drink lines.
Njoro Canning Factory has received approval to ship in 100 tonnes for use in jams and canned pineapples—representing the smallest allocation, though critical for its niche operations.
Meanwhile, Al-Mahra Industries Limited, a diverse food processor dealing in everything from sauces and syrups to candies and cocoa powder, has been cleared to import 1,000 tonnes. Kenafric Beverages & Bottling Limited will bring in 1,500 tonnes for its ready-to-drink juices and energy beverages.
Kenya entirely imports its requirement of white refined sugar also known as industrial sugar under the EAC-wide duty remission scheme that imposes a 10 percent duty on such shipments.
Sugar imports under the EAC remission scheme are tightly regulated with those seeking permits being subject to tough measures.
For example, as a prerequisite, every Kenyan manufacturer seeking support through the scheme must be registered and maintain their registration as a manufacturer with the Sugar Directorate.
Also, every company, other than where that manufacturer only imports sugar from a Common Market for Eastern Africa(Comesa) Member State, must be gazetted under the EAC Customs Management Duty Remission Scheme.
In cases where the refined sugar originates from outside of Comesa, the importer is required to apply to The National Treasury for authority for every separate shipment of refined sugar. The application shall declare the origin, volume, quality, and price.
