The East African Community (EAC) has approved 10 Kenyan companies to import 208,600 tonnes of industrial sugar under reduced duty terms.
The approval is part of the East African Community (EAC) duty remission program, which enables qualifying companies to import goods at reduced tax rates.
“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 per cent for 12 months,” Beatrice Askul said, who is the EAC Council of Ministers chairperson.
Kenyan-made sugar-based products are produced using industrial sugar imported through the EAC-wide duty remission scheme, which allows for a reduced import duty rate of 10 per cent.
EAC Approves 10 Kenyan Companies
The 10 companies approved 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, and Al-Mahra Industries.
In addition, the companies will import industrial products under a special East African Community (EAC) tax arrangement for products that will include tomato sauce, soda, and juices.
However, all firms must be registered with the Sugar Directorate and are strictly required to use the sugar exclusively for manufacturing.
Further, the approved companies shall utilise the imported industrial sugar in a variety of food and beverage products. For example, Coca-Cola Beverages Kenya and Equator Bottlers will incorporate industrialised sugar into soda and juice production.
In addition, Kenafric Beverages, Bidco, and Trufoods plan to use imported sugar to produce sauces, jams, and other processed foods.
Industry analysts suggest that the move could reduce production costs and help stabilise prices for everyday consumer goods that depend on sugar. It also aligns with the government’s broader strategy to support local manufacturing and cut down on imports of finished products.
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Industrial Sugar Import Requirements
All Kenyan manufacturers must be registered with the Sugar Directorate and must maintain this registration continuously, and any manufacturer except those importing sugar solely from COMESA Member States must be officially gazetted under the EAC Customs Management Duty Remission Scheme.
Moreover, manufacturers may engage suppliers and obtain a pro-forma invoice, which is required to apply for an Import Declaration Form (IDF).
Manufacturers must seek pre-approval from the Sugar Directorate for every individual shipment of refined sugar, declaring the shipment’s origin, volume, quality, and price.
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However, if the refined sugar is sourced from outside COMESA, manufacturers must obtain approval from the National Treasury for each shipment, again declaring origin, volume, quality, and price.
Upon arrival at the port of entry, customs formalities must be completed. This includes full tax payments, separate approvals from the Sugar Directorate, KRA, KEBS, and Port Health authorities and only after these checks will the sugar be released to the manufacturer
Additionally, manufacturers operating under the Duty Remission Scheme must reconcile each shipment’s receipt, usage, and production data. This information must be provided to regulators for auditing, which is essential to maintain registration and quota allocation.
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