The price of sugar in Kenya’s leading supermarkets has dropped by up to Ksh. 50 per two-kilogram packet, bringing a smile to consumers across the country.
A spot check by The Kenya Times showed that the one kilogram of sugar was selling at a price of between Ksh194 to Ksh200 a kilo.
In Naivas Supermarket, for example, the price of a two-kilogram packet had dropped down from Ksh 440 to Ksh 399.
The price of a kilogram in the same supermarket had dropped from Ksh 220 to Ksh 200.
The cheapest sweetener brand is currently retailing at Ksh. 389 per two Kilograms whereas Kabras, Ndhiwa and Mumias sugar are going for Ksh. 399.
Similarly, in Khetias Supermarket, two kilograms packet of the sweetener is retailing at Ksh. 388 while Kabras, Ndhiwa, Butali and Olepito was at Ksh 398 each in the supermarket.
However, the brand with the highest price tag in Khetias Supermarket is Amana brand which was marked with a tag of Ksh. 440.
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CBK Report Concerning Sugar Prices
According to a report by the Central Bank of Kenya (CBK), sugar’s price inflation in January 2024 reduced to 32.1 percent compared to 39.0 percent in late 2023.
“The price of sugar remained stable in January 2024, compared to the prices that prevailed in November and December 2023,” CBK stated.
“Sugar prices have been moderating since October 2023 after local companies resumed operations after temporary closure to undergo annual maintenance.”
CBK also noted that the favorable rainfall received in different parts of Kenya has substantially improved cane production which is consequently expected to moderate prices in coming months.
“With regard to sugar prices, the expectation of price decline was informed by the re-opening of local factories and the moderation in global prices,” read a part in the report.
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Closure of Milling Companies
The drop in sugar prices comes months after the Agriculture and Food Authority (AFA) ordered the temporary closure of sugarcane milling factories for four months over reported sugar cane shortage in 2023.
“Sugar cane milling operations in Western temporarily cease operations with immediate effect for a period of four months to allow sugar cane to mature,” AFA acting director Jude Chesire said in 2023.
The regulating body announced that all milling companies will resume production on November 30, 2023.
The shortage of cane also resulted in high retail prices of the commodity due to a reduced supply of the sweetener as most of the millers remain closed.
This led to increased supermarket prices of the essential sweetener with the cheapest going at Sh428 for a two- kilogramme packet while the highest retailing at highs of Ksh500.
The Cabinet in August 2023 considered and approved the programme for the revival and commercialization of State-owned Companies, being: Nzoia, Chemelil, Miwani, Muhoroni, South Nyanza, and Mumias Company.
