Sugar Prices to Increase as Govt Doubles Permit Fees to Ksh200K

Kenyans may have to spend more money on sugar and its by-products after the the Agriculture and Food Authority (AFA) announced changes that will see a double increase in the cost of importation for traders. 

The Authority announced new permit prices that saw a raise in the import and export permit registration fee from Ksh100,000 to Ksh200,000. This means that it will cost traders an extra Ksh100,000 to register for permits to import and export sugar and sugar products.

The increased cost is expected to be passed on to consumers which may see an increase in a number of household products that need sugar in the manufacturing process. They include bread, yoghurt, juices, confectionaries, among others. 

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This comes just days after the authority levied a two percent import tax on cereals, including maize, rice, wheat, rye, oats, barley and millet as well as legumes such as beans, peanuts and lentils as of Monday, July 1^st. 

The increase in cost of importation saw a decrease in imports of food products into the country.

Road Maintenance Levy Increase Set to Take Effect Despite Court Ruling That Stopped It

The government’s move to increase the Road Maintenance Levy from Ksh18 to Ksh25 is likely to take effect after the petitioner that had challenged the move in court withdrew the case.

The High Court had prevented the government from raising the controversial Road Maintenance Levy while awaiting the hearing and determination of a petition lodged by a resident of Mombasa.

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George Odhiambo Juma, a taxi driver from Mombasa had challenged this decision on Friday, August 2, claiming that the increase was implemented without sufficient public consultation. 

He made an application to withdraw the case on Thursday, August 29, just a week after he had filed the case. 

With no resistance from the parties to the issue, Justice Gregory Mutai approved Juma's request to withdraw the case.

"The respondents do not oppose the withdrawal of the petition. In the circumstances, the court endorses the withdrawal. Consequently, the petition is hereby marked as withdrawn with no orders as to costs. The court file shall be closed forthwith," Justice Mutai ordered.

In July, former Road and Transport CS Kipchumba Murkomen informed the Parliamentary Finance and National Planning Committee that the levy had not been reviewed since 2016 and, therefore, required an update. 

The CS said that the hike in the tax would see the government collect Ksh115 billion up from Ksh83 billion, which is an additional Ksh32 billion, adding that this would allow the government to repair and build more roads.

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