This archive report was first published on 17 October 2019.
Thursday, October 17, 2019, marked a concerning day for sugar consumers in Kenya as local millers' sugar stocks plummeted by 41% due to a persistent cane shortage.
The available stocks held by millers stood at 7,000 tonnes as of Tuesday, a significant drop from the optimal 12,000 tonnes required at any given time.
According to Solomon Odera, Head of Sugar Directorate, the stocks had been ranging at about 7,000-7,500 tonnes in the last couple of months.
"The stocks available have been depressed by a lack of enough cane in the factories as the shortage persists," Odera said.
He added that the optimum daily stocks required at the factories are meant to last the country for at least five days.
As a result of the cane shortage, production declined by seven percent in August compared to the same time last year, resulting in a poor performance in most of the factories.
Furthermore, sugar imports in the eight months to August grew by 85 percent compared with the same period last year, as the shortage in local production continues.
The regulator has stepped up imports of cheap sugar to bridge the local deficit and keep the cost of the commodity low.
As a result, the price of sugar has dropped to as low as Sh205 for some brands from a high of Sh230 in July.
