Kagwe Defends 4% Sugar Levy Before Senate Committee


Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe defended the 4 percent Sugar Development Levy on Thursday before the Senate Committee on Delegated Legislation.

  Accompanied by Kenya Sugar Board CEO Jude Chesire, Kagwe stated that the levy, which was gazetted and set to be implemented from July 2025, is essential for sustaining growth in the sector, despite requests from industry stakeholders to reduce it to 1 percent or increase it to 10 percent. "Keeping the rate at 4% is not intended to burden the industry, but rather to align resources with the scale and scope of the current challenges and opportunities," Kagwe informed the committee. The funds generated from the levy are designated under the Sugar Act 2024 for various purposes: cane development (40 percent), factory rehabilitation (15 percent), research and training (15 percent), infrastructure (15 percent), administration of the Kenya Sugar Board (10 percent), and support for farmer organizations (5 percent). The Cabinet Secretary emphasized that these funds are vital for addressing cane shortages, facilitating new milling investments in Transmara and Bura, and replacing outdated cane varieties with those that are resistant to drought and disease. He also mentioned that the Kenya Sugar Research and Training Institute (KESRETI), which has had its mandate expanded under the Act to include training, requires additional resources for curriculum development and infrastructure improvements. "The 4% levy guarantees sufficient and sustainable financing to fulfill these expanded responsibilities," Kagwe asserted. The Senate Committee will review the ministry’s stance along with stakeholder suggestions before making a decision on whether to maintain or adjust the levy rate.

Comments

Post a Comment

Popular posts from this blog

The financial mismanagement at ENOOMATASIANI GIRLS SECONDARY SCHOOL has been brought to light.

Image
  The most recent report from the Auditor General for the fiscal year ending June 30, 2024, has uncovered mismanagement at Enoomatasiani High School under the administration of Principal Tabitha Mbabu (TSC No. 224359). There are calls for her transfer over mismanagement and not very impressive academic excellence under her leadership. As per the report, the statement of receipts and payments indicates that the school's fund income from parents' contributions amounts to Kshs. 89,627,445, as detailed in Note 4 of the financial statements. An examination of the school's fee structure during the review period revealed that the school fees were raised beyond the limits set by the Ministry of Education (MOE), resulting in an unauthorized increase in annual fees of Kshs. 15,000 for form one students and Kshs. 18,000 for students in other classes. This action contravenes Regulation 44 of the Basic Education Regulations, 2015, which stipulates that no public school or instit...
Read more

The Auditor General has declared Jomo Kenyatta Girls High School to be technically insolvent due to poor management and substantial outstanding bills

Image
A report from the Auditor General for the period ending June 30, 2024, has issued serious recommendations regarding the management led by Principal Jane Mureithi, who took charge on May 23, 2022. The report indicates that the school is technically insolvent and is operating at a deficit, leading to significant pending bills. The report reveals that the statement of assets and liabilities shows a current liabilities balance of Kshs. 27,728,458, which surpasses the current assets balance of Kshs. 22,763,448, resulting in a negative working capital of Kshs. 4,965,010. Consequently, the school is technically insolvent, and its capacity to maintain its services relies on support from the Government and its creditors. However, this significant uncertainty has not been reflected in the financial statements. Under these circumstances, the school may struggle to fulfill its short-term financial obligations as they become due. The statement of assets and liabilities indicates an accounts...
Read more

The auditor general has disclosed extensive corruption at Bura Girls High School, prompting stakeholders to demand the principal's transfer

Image
  The latest report from the auditor general for the fiscal year ending June 30, 2024, highlights considerable mismanagement and corruption under Principal Eunice Wambua's administration. Stakeholders are calling on the Ministry of Education and the Teachers Service Commission to take immediate action and transfer her, as she has exceeded her effectiveness and has not delivered significant academic achievements or infrastructure improvements. She faces allegations of incompetence, authoritarian behavior, coercion, and intimidation towards teachers with differing views. Moreover, she is reported to occasionally manipulate Parent Association members to enable unlawful activities. Suppliers and contractors are also experiencing delays in payment. The statement of assets and liabilities indicates an accounts receivable balance of Kshs.30,937,580, as detailed in Note 13 of the financial statements. Of this amount, Kshs.30,879,980 pertains to fees, while Kshs.57,600 relates to rent...
Read more