A 27,000-tonne consignment of raw sugar imported for refining has come under fresh scrutiny after MPs ordered the government to verify its quantity, test samples and establish whether the company handling it has the capacity to refine the entire shipment.
The National Assembly Committee on Trade, Industry and Cooperatives has given Trade Cabinet Secretary Lee Kinyanjui seven days to set up a team to confirm the amount of raw sugar imported through the Port of Mombasa.
The committee has also ordered samples of the consignment held at the Port of Mombasa, Nairobi Freight Terminus Autoport and Mombasa Sugar Refinery Limited factory to be collected and tested by an independent laboratory.
The tests are expected to establish the type of sugar contained in the shipment amid concerns over whether the imported raw sugar could be diverted for human consumption.
The orders are contained in an interim report prepared by the committee following an inquiry into the importation of the 27,000 tonnes by Mombasa Sugar Refinery Limited.
The committee, chaired by Ikolomani MP Bernard Shinali, said the interim report was necessary to ensure the sugar is not diverted for human consumption, all taxes owed to the government are secured and existing laws are followed.
The inquiry was launched after a media exposé alleged that Mombasa Sugar Refinery Limited had brought in 27,000 tonnes of harmful sugar from South Africa, which was later repackaged and distributed for sale.
The committee has now sought further checks on the consignment and the company involved before the matter is settled.
"The committee recommends that the State Department for Industry establish whether Mombasa Sugar Refinery Limited has the capacity to refine 27,000 tonnes of raw sugar and report to the committee within seven days of adoption of this report by the National Assembly," Mr Shinali said.
The committee said it had examined documents, held meetings with government agencies and Mombasa Sugar Refinery Limited and visited the three locations where the sugar was found.
"In carrying out the inquiry, the committee has reviewed documents, held meetings with relevant government agencies and Mombasa Sugar Refinery Limited, and conducted inspection visits to the Port of Mombasa, Nairobi
Freight Terminus Autoport and Mombasa Sugar Refinery Limited."
The inspections established that the shipment was imported by Wilmar Sugar Pte Limited on behalf of Mombasa Sugar Refinery Limited.
The committee also found that raw sugar is not included among the types of sugar listed for importation in Form 3 and Form 4 under the Schedule to the Sugar (Imports and Exports) Regulations, No 168 of 2025.
The raw sugar is currently being held at three locations, with part of it stored at sheds 7 and 8 at the Port of Mombasa, another consignment at the Nairobi Freight Terminus Autoport and the rest at Mombasa Sugar Refinery Limited.
According to the committee, test runs were underway as the company prepared to begin refining the imported raw sugar.
The inquiry also established that the National Treasury and Economic Planning Cabinet Secretary had approved a waiver of the Railway Development Levy and Import Declaration Fee under the Second Schedule to the Miscellaneous Fees and Levies Act.
The committee has further called for the formation of a multi-agency team to oversee the matter.
It recommended that Agriculture Cabinet Secretary Mutahi Kagwe gazette the appointment of the team and provide it with clear terms of reference within 14 days after the National Assembly adopts the interim report.
The Kenya Sugar Board has also been directed to provide the committee with records relating to imported raw sugar.
"The Kenya Sugar Board submits to the committee returns filed pursuant to the Guidelines on Control of Imported Raw Sugar for Refining for the last five months, within seven days of adoption of this report by the National Assembly," Mr Shinali said.
The committee also wants the consignment kept under tight control until the government establishes that all required taxes have been paid.
"The Kenya Revenue Authority ensures that the raw sugar at the Port of Mombasa, the Nairobi Freight Terminus Autoport and Mombasa Sugar Refinery Limited is bonded until all taxes due on the sugar are fully paid."
The committee further wants the government to put in place clearer rules on the importation of raw sugar and the refining of industrial sugar.
It has recommended that the Cabinet Secretary for Agriculture and Livestock Development prepare regulations to govern the importation of raw sugar and the refining of industrial sugar.
The proposed regulations are expected to guide the issuance of licences for companies seeking to import raw sugar and should be developed within 60 days after adoption of the interim report by the National Assembly.
The measures will allow the government to establish the quantity and nature of the consignment, confirm its intended use, secure taxes due and ensure that the handling and refining of raw sugar are covered by the law.