Serrari Group

Kenya's Sugar Imports Decline to 7-Month Low as Local Production Surges

In a significant development, Kenya’s sugar imports reached a seven-month low in February, marking a notable shift towards increased domestic production. According to the Sugar Directorate, only 42,381 tonnes of sugar were imported last month, a sharp drop from previous figures.

This decline coincides with the resurgence of local production as factories resumed operations following a prolonged shutdown due to cane shortages. Notably, February saw local mills producing 63,075 tonnes of sugar, the highest output since January 2023.

This surge in domestic production has resulted in tangible benefits for consumers, with sugar prices experiencing a notable decrease. The average retail price of sugar dropped to Sh185 per kilogram in February, reflecting a 5.1 percent decline from the previous month.

Similarly, the weighted ex-factory sugar price for February decreased by 6 percent to Sh6,708 per 50kg bag. Retail surveys conducted at major outlets confirmed this downward trend, with sugar retailing between Sh185 and Sh200 per kilogram—a significant decrease from previous months.

Overall, this decline in sugar imports and subsequent drop in prices signal a positive shift for consumers and highlight the resilience of Kenya’s sugar industry. As local production continues to gain momentum, stakeholders remain optimistic about the industry’s potential to contribute to the nation’s economic growth.

photo source: Google

By: Montel Kamau

Serrari Financial Analyst

25th March, 2024

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