In a move set to boost Kenya’s manufacturing sector, ten major companies have been cleared to import a total of 208,600 tonnes of sugar for industrial use. The approval, issued under the East African Community (EAC) duty remission scheme, allows the firms to bring in sugar at a lower tax rate to support the production of goods such as sodas, juices, sauces, and jams.
The EAC duty remission program enables companies to import raw materials at a concessional duty rate of 10%, down from the usual 25%, as long as the sugar is strictly used for industrial purposes. The goal is to make local production more competitive by cutting down input costs.
The ten companies cleared for the sugar imports 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
- Al-Mahra Industries
These firms are expected to use the sugar in a wide range of processed food and beverage products. Coca-Cola and Equator Bottlers will utilize the imports in carbonated drinks and fruit juices, while Bidco, Kenafric, and Trufoods plan to incorporate it into sauces, jams, and other consumer goods.
The clearance comes with strict guidelines to ensure compliance. All firms must be registered with Kenya’s Sugar Directorate and are required to use the sugar exclusively in industrial manufacturing.
Analysts say the move is a boost to Kenya’s industrial competitiveness, potentially stabilizing prices for everyday products that rely on sugar as a key ingredient. It also reflects the government’s ongoing efforts to support value addition in the local manufacturing sector and reduce reliance on expensive imports for finished goods.
