Kenya: Sugar prices rally as stocks plummet

Published May 18, 2023

Tridge summary

Kenya is experiencing an 80% drop in its weekly optimal sugar stock due to reduced production and high import costs, leading to record high retail prices. The Sugar Directorate has noted a decrease in opening stocks from 20,000 tonnes to 4,000 tonnes. The high cost of sugar, now at Sh420 for a 2-kilogramme packet, is attributed to low production, global sugar shortage, and the depreciation of the shilling against hard currencies. Despite duty waivers, imports have not significantly reduced costs. The government is considering regional imports as a short-term solution, although high international prices may mean these countries may prioritize selling to Europe.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Kenya’s weekly optimal stock of sugar has dropped by 80 percent on the back of diminished production by factories and expensive imports, pushing up retail prices to a historic high. The Sugar Directorate says they are now recording weekly stocks of 4,000 tonnes against the required optimum of 20,000 tonnes in order to meet the daily requirement in the country. Read: Prices of sugar up by 18pc on shortage The shortage in supply has pushed the cost of sugar to Sh420 for a two-kilogramme packet from Sh300 at the beginning of last week. Head of the directorate Jude Chesire says the deficit has been occasioned by low production at the factory level that has seen some of the millers scale down on milling due to a severe shortage of raw material. “Our weekly opening stocks are now at 4,000 tonnes against normal average stocks of 20,000,” said Mr Chesire. Mr Chesire said despite the Treasury issuing a waiver on duty in December last year, the quantities that have been shipped into the ...

Source: Businessdailyafrica