KENYA GOVT. FACING DECLINE IN CANE PRODUCTION

A two-kilo of sugar has risen by Sh12, at a time when the country is facing a 34 percent decline in cane production. A spot-check by Capital Business at leading retail stores such as Naivas and Quickmart in Embakasi, Nairobi showed that a packet has gone up from Sh300 last week to Sh312 currently.

Costly sugar comes at a time when the country’s sugar production in August dipped 34 percent compared to the previous month, attributed to immature canes and the just concluded general elections.

Data from the Sugar Directorate showed that total production dropped to 46, 459 tonnes in August from 70, 278 tonnes in July.

Factory maintenance at Soin, OlePito, and Soin as well as the re-opening of Chemelil and Nzoia plants caused a production drop, the Directorates said.

Over the last few months, prices of basic household items such as sugar, and edible oil, among others, have been rising, pilling inflationary pressures on consumers.

An increase in commodity prices means that households will have to dig deeper into their pockets to afford these products.

Kenya’s inflation accelerated to a record high of 9.2 percent in September from 8.5 percent in August, the Kenya National Bureau of Statistics (KNBS) data showed, on the continued increase in the cost of food, fuel, as well as the depreciation of Kenyan shilling against the dollar.

Efforts to stabilize sugar prices have been hampered by a 210,000 sugar import cap that the Treasury introduced to protect local producers.

Under the Common Market for Eastern and Southern Africa (COMESA), members are allowed to import up to 350,000 tonnes, meaning that the country could import an additional 140,000 tonnes to cushion locals.