Sugar prices shoot up by 50 per cent

Sugar on sale at a supermarket in Kisumu on August 15th 2018. Consumers have now reasons to worry as sugar shortage hits the town escalating from sh.125- sh.155 per kilogram. [Photo: Collins Oduor, Standard]

A spot check by The Standard in Kakamega, Bungoma, Vihiga and Busia counties found that supermarkets and retail shops were selling a kilo for Sh150, up from between Sh90 and Sh100 last month.

“It has become an uphill task to get sugar since the controversy over imports began. Don’t be surprised to buy the same at a higher price next time you come looking for sugar,” a worker at the Yako Wholesalers Kakamega town said.

A 50kg bag of Kabras sugar is retailing at Sh6,000 up from Sh5,000 at Yako Wholesalers and several retail shops in the region.

Last week, there was no sugar on the shelves of most supermarkets in Kakamega town. Yesterday, only the Kabras brand could be found in several shops, with 2kg selling at Sh300. The rising prices add to the woes in the sugar sub-sector.

The high prices have been partly attributed to the controversy surrounding importation of unprocessed duty-free sugar and the closure of some factories due to financial difficulties and scarcity of raw materials.

Billy Wanjala, a Bungoma farmer and former director of the defunct Kenya Sugar Board, said the prices could rise even further because of the challenges in the industry.

“Kenyans should brace themselves for even harder times ahead because traders appear to be playing games following a clampdown on the unprocessed sugar and cheap imports shipped in duty free last year,” he said.

The Kenya National Federation of Sugarcane Farmers has asked the sugar directorate to look into the issue urgently.

The federation wants the Sugar Pricing Committee to review the price of cane from the current Sh4,200 to at least Sh6,000 a tonne.

“Sugarcane prices must be reviewed based on market forces and since the price of sugar has hit the roof, we wish to see farmers offered better prices for the raw material,” said the federation's deputy secretary general, Simon Wesechere.

In Busia, Governor Sospeter Ojaamong has vowed to ensure that Busia sugar factory is given a clean bill of health to start crushing cane as a remedy to the challenges facing farmers.

Mumias Sugar Company has suffered yet another setback after electricity supply to the factory was cut because of a Sh1.2 billion bill.

With an installed crushing capacity of at least 8,000 tonnes of cane a day, Mumias was once a leading sugar producer until the firm plunged into financial difficulties.