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Farmers caution against new levy on cane transportation

Sugarcane

Sugarcane harvested at a farm in Mabanga village, Kanduyi in Bungoma County being loaded onto a tractor before transportation.

Photo credit: File | Nation Media Group

What you need to know:

  • The Bill proposes to introduce new levy on transportation of sugarcane to the factories.
  • Sugarcane farmers federation says importation of duty-free sugar is working against local farmers.

Sugarcane farmers have cautioned that the proposed introduction 16 per cent Value Added Tax (VAT) on transportation of cane could dim the recovery of the sub-sector, whose fortunes have dwindled over the years.

Through the Kenya National Federation of Sugarcane Farmers (KNSF), they pointed out that proposals contained in the Finance Bill, 2024 could see cane farmers incurring an additional cost of Sh2 billion annually.