A bold new proposal aimed at combating rising lifestyle diseases in Kenya could soon reshape the country’s soft drinks industry.
Nandi Hills Member of Parliament, Hon. Bernard Kitur, has presented a draft plan for the introduction of a Health Promotion Levy (HPL) targeting sugar-sweetened beverages (SSBs). The proposal was unveiled during a public hearing on the #FinanceBill2025 at the Edge Convention Center in South C, Nairobi.
The proposed levy is aimed at reducing the nation’s growing consumption of sugary drinks, which health experts link to a surge in obesity, diabetes, and other non-communicable diseases (NCDs).
“This levy is not just about taxation—it’s about protecting the health of our citizens and promoting responsible industry practices,” said Hon. Kitur.
Key Objectives of the Levy
According to the proposal, the HPL seeks to reduce sugar consumption by discouraging the production and purchase of high-sugar beverages.
It also seeks to encourage product reformulation by pushing manufacturers to reduce sugar content.
“It will also generate revenue to fund public health initiatives, including school feeding programs and healthcare infrastructure. And raise awareness among consumers about the dangers of excessive sugar intake,” reads the draft bill.The levy would target both local manufacturers and importers of soft drinks. The tax-free threshold is set at 4 grams of sugar per 100 millilitres.
Beverages exceeding this limit would attract Sh1 per gram/100ml for locally produced drinks above the threshold and Ksh 2 per gram/100ml for imported beverages exceeding the limit.
Therefore, a drink with 6g/100ml of sugar would be taxed Ksh 2 if made locally, and Ksh 4 if imported.
However certain beverages will be exempt from the levy, including 100% fruit juices with no added sugar, Dairy-based drinks containing at least 75% milk, and Products intended solely for export.
The Kenya Revenue Authority (KRA) will oversee the levy collection, while the Kenya Bureau of Standards (KEBS) will verify sugar content.
Revenue from the levy will be channeled into School feeding and nutrition programs, Public health campaigns to educate citizens about NCDs, Support for healthier beverage alternatives and Medical infrastructure and diabetes prevention programs.
Hon. Kitur has urged fellow lawmakers to back the proposal, framing it as a critical step toward ensuring a healthier future for all Kenyans.
“By implementing this levy, we are investing in the long-term wellbeing of our nation,” he added.The proposal will be reviewed further as part of deliberations on the Finance Bill 2025.
