In November, sugar prices in Kenya witnessed a welcome decline, reaching their lowest point in five months. This drop was primarily attributed to a surge in imports, which helped counterbalance a slowdown in local production. Data provided by the Sugar Directorate revealed that the average price of sugar during the month decreased to Sh213 per kilogram, down from Sh218 in October.
The decline in prices was evident across the country, with some brands selling for less than Sh200 per kilogram in various supermarkets. The average retail price for sugar in November stood at Sh213 per kilo, marking a notable drop from the Sh218 recorded in October. Similarly, wholesale prices saw a reduction, falling to an average of Sh8,867 per 50-kilogram bag in November from Sh9,145 in October, representing a three percent decrease.
The price drop coincided with a significant increase in sugar imports, which climbed by 51.3 percent to reach 90,759 tonnes in November, marking the highest level since March 2022. Consequently, the total sugar supply in the market, including locally produced sugar, reached 113,495 tonnes, surpassing March's figures and denoting a 37 percent increase compared to October.
This price reduction offered a sense of relief for consumers who had been burdened by high sugar prices. The commodity had experienced the steepest price rise among food products tracked for inflation by the Kenya National Bureau of Statistics over the past year. The price surge was primarily attributed to the temporary closure of sugar mills for four months starting in July, a measure taken to allow cane to mature.
The Agriculture and Food Authority made this decision in response to a cane shortage faced by sugar factories, which forced some to resort to crushing immature cane and fueled cane poaching. As a result, domestic sugar production plummeted to a mere 22,736 tonnes in November, a significant drop from the 81,648 tonnes produced in January.