The Central Bank of Kenya (CBK) in its latest Agricultural Survey Report has projected a reduction in the prices of food items in February.
Among the food items whose prices have been projected to reduce include sugar, edible oils and cereals.
According to the survey, the reduction in the price of edible oils was informed by the recovery of global palm oil production which subsequently has led to the reduction in global prices of the commodity.
“Expectations about prices of edible oils point to a decline in February 2024. This was informed by the observed easing of international prices following recovery of global palm oil production,” noted the survey.
Additionally, CBK indicated that the reduction in sugar prices in the country was as a result of the reopening of local sugar factories.
“With regard to sugar prices, the expectation of price decline was informed by the re-opening of local sugar factories and the moderation in global sugar prices,” added the survey.
Also Read: 9 Items Whose Prices Decreased in January 2024
Prices of Cereals and Vegetables
On the other hand, the prices of onions and cereals were projected to reduce in February. The survey explained that the harvesting of onions in prime growing areas in the country would begin towards the end of February.
“Harvesting of onions in prime growing areas of Kajiado, namely, Kimana, Selengei, Namanga, and Oloitoktok is expected to start towards the end of February 2024 and to continue until March 2024.
“Domestic prices of onions are also largely dictated by the production and pricing of onions from Tanzania,” added CBK.
At the same time, the survey indicated that the prices of cereals such as beans, maize and green grams would reduce because of an expected increase in supply.
Also, the prices of tomatoes and potatoes were projected to reduce because of the consistent rainfall received in January and December 2024.
Also Read: 7 Items Whose Prices Have Decreased
“In the case of cereals and grains, some respondents noted that the expected supplies from the lower Eastern region, where harvesting of beans, maize and green grams is ongoing, will lead to a decline in the prices of these commodities,”
“However, price expectations of onions, carrots, tomatoes and potatoes point to a decline, consistent with subsiding rainfall as these crops do well in a limited rainfall environment,’ CBK noted.
Additionally, the prices of processed and unprocessed milk were projected to decline because of increased pasture resulting from favourable rainfall.
“Price expectations for vegetables items including kales/sukuma wiki, cabbages, spinach and traditional vegetables point to a less pronounced decline in February,” added the report.
CBK on Food Items Whose Price Will Increase
On the flip side, the survey projected that the price of rice will increase because of an increase in import cost as a result of the weakening of the shilling.
The expectation that prices of rice will increase was informed by concerns about increasing import costs, driven by the value of the Kenya shilling vis-à-vis foreign “currencies and deteriorating supply chains following the disruption of shipments through the Red Sea and the Suez Canal.
“However, the expectations of increased rice prices were less pronounced in the January 2024 survey compared to the December 2023 survey,” it added.
