In summary:
- Sugar prices in Kenya witnessed a significant drop of 4.6% in February, thanks to increased local production after a four-month ban on cane crushing.
- The decline in sugar prices brought relief to consumers, food manufacturers, and pharmaceutical firms, easing inflation in February.
- Despite the reduction, current sugar prices remain notably higher compared to the same period last year, reflecting a 30.2% increase.
Early this week, Kenya experienced a remarkable shift in its sugar market. Prices plummeted by 4.6%, marking a welcome change after months of uncertainty. This drop was a direct result of increased local production following the lifting of a four-month ban on cane crushing. As consumers, food manufacturers, and pharmaceutical firms celebrated this relief, it also contributed to a broader easing of inflation.
Read:Â https://dishy.co.ke/sugar-prices-to-hit-high-records/
According to data from the Kenya National Bureau of Statistics (KNBS), the average price per kilogram of sugar decreased from Sh209.55 in January to Sh200.01 in February. This downward trend was evident in major supermarkets like Naivas and Carrefour, where sugar was retailing between Sh185 and Sh199.5. Notably, this reduction in sugar prices was part of a broader trend, including decreases in the prices of tomatoes, maize grain, and maize flour.
The ban lift in December 2023 saw a significant uptick in local sugar production, nearly doubling from 25,179 tonnes in November to 487,877 tonnes in December. This surge was facilitated by over 300,000 cane farmers who delivered 610,020 tonnes of cane to factories. However, despite this positive momentum, current sugar prices still linger significantly higher than last year’s averages, indicating a 30.2% increase. The impact of sugar prices extends far beyond the kitchen table. It affects household budgets, food manufacturing costs, and even healthcare expenses. While the recent price drop is a step in the right direction, it prompts us to question: is it enough to sustainably support consumers and industries in the long run?
