{"id":227968,"date":"2025-07-09T09:53:18","date_gmt":"2025-07-09T06:53:18","guid":{"rendered":"https:\/\/www.ghafla.co.ke\/ke\/?p=227968"},"modified":"2025-07-09T09:53:18","modified_gmt":"2025-07-09T06:53:18","slug":"kenyans-to-pay-more-to-kra-as-new-monthly-levy-introduced","status":"publish","type":"post","link":"https:\/\/www.ghafla.co.ke\/ke\/kenyans-to-pay-more-to-kra-as-new-monthly-levy-introduced\/","title":{"rendered":"Kenyans To Pay More To KRA As New Monthly Levy Introduced"},"content":{"rendered":"<p><span class=\"citation-65\">Kenyans are set to face increased costs, particularly for sugar, following the government&#8217;s introduction of a new <\/span><span class=\"citation-65\">4% Sugar Development Levy (SDL)<\/span><span class=\"citation-65 citation-end-65\">, effective from July 1, 2025.<\/span> <span class=\"citation-64 citation-end-64\">This monthly levy is payable to the Kenya Revenue Authority (KRA) and is designed to revitalize the struggling sugar industry.<\/span><\/p>\n<div class=\"source-inline-chip-container ng-star-inserted\"><\/div>\n<p><b>Key Details of the Sugar Development Levy (SDL):<\/b><\/p>\n<ul>\n<li><b>Effective Date:<\/b> July 1, 2025.<\/li>\n<li><b><span class=\"citation-63\">Rate:<\/span><\/b><span class=\"citation-63 citation-end-63\"> 4% of the ex-factory price for domestically produced sugar, and 4% of the Cost, Insurance, and Freight (CIF) value for imported sugar.<\/span><\/li>\n<li><b><span class=\"citation-62\">Who Pays:<\/span><\/b><span class=\"citation-62 citation-end-62\"> The levy is payable by all millers and importers of sugar.<\/span><\/li>\n<li><b><span class=\"citation-61\">Payment Deadline:<\/span><\/b><span class=\"citation-61\"> Remittance to KRA is due by the <\/span><span class=\"citation-61 citation-end-61\">10th day of the month immediately following the month when the domestic sugar was sold, or when the sugar was imported.<\/span> <span class=\"citation-60 citation-end-60\">The Ministry of Agriculture has appointed KRA as the collection agent and KRA is expected to issue further guidance on the specific mode of collection.<\/span><\/li>\n<li><b>Purpose of the Levy:<\/b><span class=\"citation-59 citation-end-59\"> According to the Ministry of Agriculture, the SDL is a crucial part of efforts to strengthen the sugar sector.<\/span> The funds collected will be channeled towards; <span class=\"citation-58 citation-end-58\">Development, promotion, and regulation of the sugar industry, <\/span>Price stabilization, i<span class=\"citation-57 citation-end-57\">nfrastructure development in sugarcane-growing regions, r<\/span>esearch and training, support for sugarcane farmers, rehabilitation of state-owned factories, s<span class=\"citation-56 citation-end-56\">pecific allocations are: 40% for cane development, 15% for factory development, 15% for research, 15% for regional infrastructure, and 5% for farmers&#8217; organizations, with 10% for the Kenya Sugar Board&#8217;s administrative duties.<\/span>\n<p>While the government aims to boost the sugar industry, stakeholders and analysts widely anticipate that this additional cost will lead to higher retail sugar prices for consumers. <span class=\"citation-55 citation-end-55\">This comes after a period of significant price drops for sugar in late 2024.<\/span> The new levy, coupled with an earlier increase in excise duty on imported sugar (from 5% to 7.5% in the Tax Laws Amendment Act 2024), is expected to reverse any consumer relief from lower prices.<\/li>\n<\/ul>\n<p>This new monthly levy is part of broader tax reforms outlined in the Finance Act, 2025, which came into effect on July 1, 2025 (with some exceptions). The Act introduces various other changes affecting different sectors and taxpayers, including amendments to income tax, VAT, and excise duty, all aimed at bolstering government revenue and achieving specific economic objectives.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kenyans are set to face increased costs, particularly for sugar, following the government&#8217;s introduction of a new 4% Sugar Development Levy (SDL), effective from July 1, 2025. This monthly levy is payable to the Kenya Revenue Authority (KRA) and is designed to revitalize the struggling sugar industry. Key Details of the Sugar Development Levy (SDL): [&hellip;]<\/p>\n","protected":false},"author":6073,"featured_media":197822,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[310],"tags":[1118],"class_list":["post-227968","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-entertainment","tag-kra-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Kenyans To Pay More To KRA As New Monthly Levy Introduced - Ghafla! 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