Sugar, cooking oil prices set to rise as global costs increase – CBK report
KENYA – The latest survey by the Central Bank of Kenya (CBK) has indicated that sugar and cooking oil prices are expected to increase in February 2025, driven by rising global costs that are influencing local market prices.
The Agriculture January 2025 Report highlights that industry stakeholders foresee a slight price increase for these essential commodities due to ongoing developments in the international market.
“On balance, sampled respondents expect prices of sugar and cooking oil (salad) to increase slightly in February 2025, reflecting developments in the global market, where prices of these items have edged up in the recent past,” CBK stated.
However, despite these price shifts, the cost of cooking fat is expected to remain stable.
Other food items are also projected to rise in price due to seasonal changes and low rainfall recorded between October and December 2024. The most affected products include vegetables such as tomatoes, spinach, kale (sukuma wiki), and cabbages.
“Prices of kales/sukuma wiki, traditional vegetables, cabbages, spinach, tomatoes, and potatoes are expected to be relatively higher in February 2025 compared to January 2025, some reflecting seasonality factors while others reflect the impact of inadequate October-December 2024 rainfall,” the report noted.
The price of rice will also vary. Aromatic and non-aromatic rice are expected to see a modest increase in cost, while brown rice and broken white rice prices are likely to remain unchanged.
The anticipated sugar price increase follows the government’s decision to halt sugar imports for the next year.
During the third quarter of 2024, sugar imports into Kenya dropped by 45 percent, with volumes declining from 162,189.1 tonnes in 2023 to 88,372 tonnes, according to data from the Kenya National Bureau of Statistics (KNBS).
The decline followed a Cabinet resolution on November 14, 2024, which restricted imports due to expectations of increased domestic sugarcane production.
Additionally, Kenya recently introduced a Sugar Development Levy, set at four percent of the value of domestically produced sugar and the cost, insurance, and freight (CIF) value for imported sugar.
The levy is aimed at funding research and development, upgrading infrastructure, and supporting farmers.
The Kenya Sugar Board, responsible for overseeing the levy collection, plans to invest in better cane farming practices, modernization of sugar factories, and measures to curb illegal sugar imports.
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