Industrial sugar imports surge on improved product demand

In the latest round of approvals, 17 Kenyan firms have been cleared to import 99,960 tonnes of industrial sugar under the EAC-wide duty remission scheme, which attracts a payable rate of 10 percent duty. This is a significant increase in volume compared to the previously approved import consignment of 43,000 tonnes.

“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 percentum (10 percent) for twelve (12) months,” Rebbeca Kadaga, Chairperson of the Council of Ministers, said in a notice.

Mzuri Sweets Limited has been cleared to import 20,000 tonnes of industrial sugar for use in the manufacture of bubble gum, ball gum, lollipop, candy, toffee and soft candy while Almasi Bottlers Limited has won approval to import 16,000 tonnes of the commodity for production of carbonated soft drinks, energy drinks and juices.

Kenafric Industries Limited got clearance to ship in 15,000 tonnes of industrial sugar to produce chewing gum, hard-boiled candies, lollipop sweets, toffees, and icing sugar, while Kenya Sweets Limited received approval to import 12,000 tonnes for the manufacture of boiled and milk sweets, powdered tablets, icing sugar, caster sugar, cocoa products, and soft candy.

Others cleared to import industrial sugar include; Coastal Bottlers Limited (6,500), Premier Foods Limited (3,000), Brava Food Industries Limited (3,000), Candy Kenya Limited (3,000), SBC Kenya Limited (3,000), ROK Industries Limited (1,200), Kenya Breweries Limited (7,500), UDV (Kenya) Limited (4,000), Brookside Dairy Limited (1,800), Del Monte Kenya Limited (960), and Sierra Premium Breweries Limited (3,000).

The importation of industrial sugar under the EAC remission scheme is tightly regulated. As a precondition, every Kenyan manufacturer must be registered and maintain their registration as a manufacturer with the Sugar Directorate.

Similarly, every manufacturer, other than where that manufacturer only imports sugar from a Comesa Member State, must be gazetted under the EAC Customs Management Duty Remission Scheme.

Subject to the conditions above, the manufacturer will engage with a supplier and receive a pro forma invoice with which to apply for an Import Declaration Form.

The manufacturer must apply for pre-approval from the Sugar Directorate for each shipment of refined sugar, regardless of its origin. The application must state the origin, volume, quality and price of the sugar.

If the refined sugar originates from outside Comesa, the manufacturer shall apply to the National Treasury for authorisation for each shipment. This application must also declare the origin, volume, quality and price.