NAIROBI, Kenya – Despite increased sugarcane production and falling factory prices, consumers continue to face rising sugar costs across retail stores in Kenya.
A spot check in Nairobi’s major supermarkets shows that sugar prices have gone up by as much as Sh20 over the past few months, with little relief in sight.
For instance, a two-kilogram packet of Kabras sugar, which sold for an average of Sh250 in August, is now priced at Sh269 in some stores.
Quickmart offers sugar ranging between Sh249 and Sh269 depending on the brand, while at Naivas, the same quantity retails at Sh259.
Carrefour shoppers are paying as much as Sh283 for Mumias Sugar, with the lowest-priced economy white sugar still going for Sh249.
This price surge is perplexing, considering that the Agriculture and Food Authority’s (AFA) Sugar Directorate reported a drop in factory prices.
According to the AFA’s September market update, the weighted ex-factory sugar price dipped to Sh5,059 per 50kg bag, down from Sh5,075 in August and Sh5,325 in July.
Wholesale prices also followed suit, dropping by one percent to an average of Sh5,367 per 50kg bag from Sh5,424 the previous month.
Retail prices, however, tell a different story. In September, the average retail price for sugar hovered around Sh136 per kilogram, slightly down from Sh141 in August.
Despite these modest reductions, the savings haven’t reached consumers, with prices at many stores remaining high.
The increase in production hasn’t been enough to counter rising retail prices.
Sugar production edged up slightly in September to 73,634 tonnes from 73,409 tonnes in August, while total bagged sugar production also rose by one percent, reaching 73,818 tonnes.
Over the first nine months of 2024, total sugar production surged by 65%, climbing to 615,499 metric tonnes compared to 374,119 metric tonnes in the same period last year.
Yet, sales dropped by nine percent in September to 76,688 tonnes from 84,037 tonnes in August, while factory-held stocks fell to 21,255 tonnes by the end of September.
Meanwhile, sugar imports soared in September, reaching 35,426 metric tonnes—nearly double the 18,733 metric tonnes imported in August.
This came despite a directive from Agriculture and Livestock Development Cabinet Secretary Andrew Karanja, aimed at improving farmers’ fortunes by raising the price of sugarcane to Sh5,000 per tonne in August.
A spot check in Nairobi’s major supermarkets shows that sugar prices have gone up by as much as Sh20 over the past few months, with little relief in sight.
For instance, a two-kilogram packet of Kabras sugar, which sold for an average of Sh250 in August, is now priced at Sh269 in some stores.
Quickmart offers sugar ranging between Sh249 and Sh269 depending on the brand, while at Naivas, the same quantity retails at Sh259.
Carrefour shoppers are paying as much as Sh283 for Mumias Sugar, with the lowest-priced economy white sugar still going for Sh249.
This price surge is perplexing, considering that the Agriculture and Food Authority’s (AFA) Sugar Directorate reported a drop in factory prices.
According to the AFA’s September market update, the weighted ex-factory sugar price dipped to Sh5,059 per 50kg bag, down from Sh5,075 in August and Sh5,325 in July.
Wholesale prices also followed suit, dropping by one percent to an average of Sh5,367 per 50kg bag from Sh5,424 the previous month.
Retail prices, however, tell a different story. In September, the average retail price for sugar hovered around Sh136 per kilogram, slightly down from Sh141 in August.
Despite these modest reductions, the savings haven’t reached consumers, with prices at many stores remaining high.
The increase in production hasn’t been enough to counter rising retail prices.
Sugar production edged up slightly in September to 73,634 tonnes from 73,409 tonnes in August, while total bagged sugar production also rose by one percent, reaching 73,818 tonnes.
Over the first nine months of 2024, total sugar production surged by 65%, climbing to 615,499 metric tonnes compared to 374,119 metric tonnes in the same period last year.
Yet, sales dropped by nine percent in September to 76,688 tonnes from 84,037 tonnes in August, while factory-held stocks fell to 21,255 tonnes by the end of September.
Meanwhile, sugar imports soared in September, reaching 35,426 metric tonnes—nearly double the 18,733 metric tonnes imported in August.
This came despite a directive from Agriculture and Livestock Development Cabinet Secretary Andrew Karanja, aimed at improving farmers’ fortunes by raising the price of sugarcane to Sh5,000 per tonne in August.
