This archive report was first published on 1 October 2019.
As the festive season approaches, Kenyans are breathing a sigh of relief as the retail price of sugar has started to ease, thanks to lower demand and sufficient stocks resulting from enhanced imports.
According to the Sugar Directorate, the average retail price of a two-kilo packet of sugar has dropped to Sh210, down from a high of Sh230 in July.
While the directorate's ideal price for the same quantity is Sh205, some sugar manufacturers are already retailing at this price or lower. For instance, Kabras Sugar is selling a two-kilo packet for as low as Sh205, while local non-branded sugar is going for Sh200.
The Sugar Directorate's head, Solomon Odera, attributed the decline in sugar prices to the increased imports, which have helped to cover the dwindling local production.
“The directorate has endeavoured to ensure that we bring in imports that are commensurate with deficit and this has ensured that we have adequate stocks in the market that has helped to check high cost of sugar,” Mr Odera said.
However, Mr Odera warned that the upward price pressure is likely to be felt from later this month as the country moves towards the December festive season, when consumption spikes.
