Seven Kenyan firms have been cleared to import a total of 20,800 tonnes of sugar under a special East Africa Community (EAC) tariff for the manufacture of various industrial products, including soft drinks, chewing gum and tomato sauce.
Sugar-based products made in Kenya are manufactured using industrial sugar imported under the EAC-wide duty remission scheme, which attracts a payable duty rate of 10 percent.
Beatrice Askul Moe, chairperson of the EAC Council of Ministers, said the seven firms will be allowed to make the shipments over the next 12 months.
“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,” he said in a notice.
Kevian Kenya Limited, owned by veteran industrialist Kimani Rugendo, has been cleared to ship in 6,000 tonnes of industrial sugar for the production of fruit juices and nectar sap, fruit drinks, fruit flavoured drinks, carbonated soft drinks, energy drinks, malts, tomato sauce and ketchup.
Patco Industries Limited got clearance to ship 6,000 tonnes of industrial sugar for use in the manufacture of hard boiled candies and lollipops, compressed tablets, bubble gum and chewing gum, soft chew toffee, toffees, baking icing and caster.
Others cleared to import industrial sugar include: Mars Wrigley Confectionery Kenya Limited (5,500 tonnes), Bidcoro Africa Limited (1,000 tonnes), Tri-Clover Industries Kenya Limited (1,000 tonnes), Sunny Processors Limited (700 tonnes), and Khetia Drapers Limited (600 tonnes).
Sugar imports under the EAC remission scheme are tightly regulated with those seeking permits being subject to stringent measures. For example, as a prerequisite, every Kenyan manufacturer seeking support through the scheme must be registered and maintain their registration as a manufacturer with the Sugar Directorate.
Also, every manufacturer, other than where that manufacturer only imports sugar from a Common Market for Eastern Africa (Comesa) member statse, must be gazetted under the EAC Customs Management Duty Remission Scheme.
Subject to these conditions, the manufacturer can engage with a supplier and receive a pro-forma invoice with which to apply for an Import Declaration Form (IDF).
The manufacturer would then apply for pre-approval from the Sugar Directorate for every separate shipment of refined sugar, regardless of origin. The application must declare the origin, volume, quality and price.
If the refined sugar comes from outside Comesa, the manufacturer applies to the National Treasury for a permit for every separate shipment of refined sugar. The application must specify the origin, volume, quality and price.