Soaring sugar prices and biting shortage leaves consumers poorer

A shortage of sugar countrywide has pushed prices up drastically.

A nationwide check by The Standard on Saturday yesterday indicated prices have shot up by almost Sh50 in most stores. The sweet commodity is increasingly becoming rare on supermarket shelves with some establishments dictating the amount a customer can buy.

In Nairobi Mumias sugar was not available at Tuskys Tom Mboya, Nakumatt City Hall and Ukwala Tom Mboya. “It is almost a week since we received the brand. We just hear that there is a shortage,” said an attendant at Tuskys.

At Tuskys, Kabras was the predominant brand with a two kilogram pack going for Sh260 yesterday. A month ago, another branch of Tuskys (Chap Chap) was selling a kilo at Sh110.

At Ukwala, Nzoia was the predominant brand, and was selling at Sh130 per kilogram. At Nakumatt City Hall, a kilo of Mumias Fortified was going for Sh135 and Sh290 for two kilograms.

Predominant brand

Interestingly, Nakumatt’s own sugar was the predominant brand on the shelves. And the shortage is replicated countrywide.

Nyanza, which is home to five sugar milling companies, hasn’t been spared either. In fact, it is one of the worst hit regions.

Some of the shopping malls are rationing the commodity. Nyanza is home to Chemelil, Kibos, Muhoroni, Sony and Sukari Sugar companies while Western region has Mumias, Nzoia, West Kenya and Butali factories.

In Kisumu for instance, a kilo of sugar was being sold at between Sh120 and Sh130 up from between Sh90 and Sh110.

A staff at Tuskys said they no longer stock Mumias because of inconsistent supply. “Mumias is also the most expensive in the market,” said the attendant who sought anonymity.

At Naivas Supermarket, Mumias brand was the most expensive retailing at Sh270, the highest price so far compared to Ukwala where it retails at Sh255 per two kilograms.

Two weeks ago, the two brands were selling at between Sh245 and Sh250 for a 2kg bag.

Yesterday, Mara Sugar, from the Transmara Sugar Company made fresh supplies to Kisumu bringing relief to shoppers.

“The supply of Mara Sugar is good, and that explains its dominance in the market. It is also the cheapest,” said a source at Ukwala Supermarket.

At Nakumatt Megga, shoppers were being restricted to only 1kg or 2kg packets. The supermarket was selling their brands at Sh145 and Sh290.

The most affected areas in the country are informal settlements and rural areas where shopkeepers used the shortage as an excuse to hike the prices.

In Kisumu’s Manyatta and Obunga slums for example shopkeepers in the slums were charging half a kilo for as high as Sh60 per kilo, up from Sh 50. Most of the supermarkets in Kisumu retailed sugar at between Sh125 to Sh130, depending on the brand, an increase of about 20 per cent.

“The traders are telling us there is no sugar so they have increased the prices,” said a resident at Manyatta, Doreen Okulo.

Industry experts blamed the shortage on reduced cane production owing to a shortage of cane and closure of one of the key millers — Chemical Sugar company for routine maintenance.

The shortages have also hit Migori, Kisii, Nyamira, Homa Bay, Bondo and Siaya counties.

Kenya produces 630,000 tonnes of sugar a year, compared with an annual consumption of 900,000 tonnes.

The deficit is covered through the strictly controlled imports from the Common Market for East and Southern Africa.

Currently, there are 250,000 small scale sugarcane farmers who supply over 80 per cent of cane delivered to the factories. The balance is supplied by large scale sugar factories. The shortage is not limited to Nyanza alone.

Yesterday, Nakumatt Supermaket in Meru town had put up a notice on the shelves requesting customers not to pick more than one packet of sugar. “Due to current shortage of sugar, customers are requested not to pick more than one packet,” it read. But the supermarket did not have any of the household brands.

A 5kg packet of sugar labelled Kamili Packers Ltd was retailing at Sh720 while a 1kg sold at Sh145. A 2kg packet went for Sh290.

At Budget Supermarket, there was no stock from the big millers, and they had repackaged sugar from Kwale Sugar into packets with the supermarket chain’s name on the packets. A 1kg packet was retailing at Sh125 and a 2kg packet at Sh225.

A customer service officer said the price had been ‘slightly’ adjusted upwards recently.

Price regulation

Business owners in Nyeri too have blamed the price hike to the biting shortage.Sugar products are retailing between Sh125 and Sh130 per kilo, up from Sh90 barely a month ago.

“I am selling the local sugar Woodleys at Sh125 per kg. At some point in August, the same retailed at Sh95 which rose to Sh98, Sh105 and Sh110 presently,” said George Waihenya, a shopkeeper in Nyeri town.

Mr Waihenya complained that there is acute shortage of the product in the market.

In Mathai Supermarket in Nyeri, a kilo retailed at Sh130 up from Sh90 some months ago.

The shop is selling Mumias and Mara Sugar at Sh130 per Kg while Economy Sugar is retailing at Sh115. Samrat Supermarket in Nyeri was selling Samrat Sugar at Sh125 a kilo.

Many traders observed that prices vary even from the market where they buy the product suggesting for some form of price regulation in the industry to avoid price inconveniences.

Consumers of sugar have been forced to dig deeper into their pockets as price of the commodity in the North Rift region shot higher in the past few days.

This spells tougher economic times with the prices in some regions increasing by between Sh 600 and Sh 900 for a 50 kg bag.

In Trans Nzoia County, traders in Kitale town are selling a 50 kg bag of sugar at Sh 5,400 up from last week’s price of Sh 4,800 for the same quantity. The price had last month shot up to Sh 6,200 before it dropped to the Sh 4,800 and then went up again to Sh 5,400.

Khetias, Tuskys, Transmatt and Nakumatt showed that the prices for a kilo of sugar varies between Sh120 and Sh130. Traders said the hike was as a result of increased prices from the sugar milling companies.

“We are not to blame. We have been forced to raise the price because millers have also adjusted the prices upwards,” said a manager at one of the supermarket stores.

Consumers now want the government to move in and stabilise the prices and save them from the high cost of the basic commodity.

- Stories by Kevin Ogutu, Kepher Otieno, James Omoro, Isaiah Gwengi, Osinde Obare, Titus Too, Graham Kajilwa, Peter Mburu and Phares Mutembei