MBABANE – Eswatini’s sugar industry is facing a fresh external threat after Kenya introduced a steep increase in excise duty on imported sugar.
This is a move that has already forced local exporters to halt shipments worth thousands of tonnes and could undermine one of the industry’s most lucrative export markets.
The development comes as Ugandan sugar manufacturers have also protested the new Kenyan tax, warning that it would make exports to the neighbouring country commercially unviable.
However, the implications extend far beyond Uganda, with Eswatini now finding itself among the countries likely to suffer significant losses if the tax takes effect on July 1.
According to reports from Uganda’s Daily Monitor, the Kenyan Government plans to raise excise duty on imported sugar from KSh7 500 (over E900) per tonne to KSh40 000 (E5 000) per tonne under the Finance Bill, 2026.
The 5-fold increase has alarmed regional sugar exporters who have relied on the Kenyan market for years.
For Eswatini, the impact has been immediate.
Eswatini Sugar Association (ESA) Chief Executive Officer Banele Nyamane confirmed that exporters have already been forced to cancel planned shipments after realising they would not reach the Port of Mombasa before the July 1 implementation date.
He said the uncertainty surrounding the new tax meant exporters could not afford to risk sending consignments that might arrive after the deadline and become subject to the significantly higher levy.
“We have had to urgently cancel shipments that will not make it to Mombasa by July 1,” Nyamane said.
He explained that Eswatini had already exported approximately 10 000 tonnes of sugar to Kenya during the first half of the year.
“We had planned to ship around 8 000 tonnes every month from July onwards. Of that amount, about 2 500 tonnes had already been booked for shipping and is now at risk of facing this excise tax.”
Nyamane said customers had desperately tried to secure supplies before the deadline.
“Our customers pleaded with us to try and ship the sugar before June 30, but unfortunately this was impossible because vessels were simply unavailable.”
The consequence is that both buyers and sellers now face considerable uncertainty.
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Eswatini’s sugar industry is facing a fresh external threat after Kenya introduced a steep increase in excise duty on imported sugar.