Kenya recorded increased domestic sugar output in the first quarter of 2024 to up to 485,802 tonnes by August leading to a drop in retail prices, the Agriculture and Food Authority has observed.
According to a report by the food agency, there was a constant drop in production witnessed in April and May this year following a two-week closure of Transmara and Sukari mills for maintenance and minor shutdowns at Mumias and West Valley.
However, production rebounded in June and July to 75,500 metric tonnes and 84,500 metric tonnes respectively, following the resumption of operations at two millers.
West Kenya Sugar factory led production during the period with 97,260 tonnes followed by Naitiri with 65,420 tonnes, Kibos at 57,000 tonnes, Butali with 53,204 tonnes, and Transmara with 38,435 tonnes.
Nzoia Sugar, Chemili, South Nyanza (Sony), Muhoroni, and Mumias were among the lowest producers with 11,605, 17,575, 16,610, 11,984, and 24,397 tonnes respectively.
Kenya has 17 sugar factories with a combined installed crushing capacity of 55,300 tonnes of cane per day.
The country’s annual sugar consumption stands at 1.1 million metric tonnes, with 950,000 metric tonnes designated for household use, translating to an average monthly consumption of 80,000 metric tonnes.
The drop in sugar prices had generally been falling since all sugar factories resumed milling in December 2023. This is due to improved availability with production hitting 84,000 metric tonnes.
The current increased production has led to sugar prices dropping to Ksh5,128 per 50kg bag from Ksh9,500 a year ago.
Cane prices have also fallen from Ksh6,050 per tonne to Ksh4,950. In June and July 2024, the price was retained at Sh5,125 per tonne, a rate that was last reviewed on July 4.
AFA also indicated that imports of sugar had dropped considerably partly due to a court case that halted imports and low domestic prices.
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Imports of 4,300 metric tonnes of brown sugar were recorded in June 2024, mostly from Uganda and COMESA, compared to May’s import of 5,100 metric tonnes and April’s 22,992 metric tonnes.
This was a decline from 24,582 metric tonnes, 28,477 metric tonnes and 35,626 metric tonnes of brown/mill white sugar imported into the country in March, February and January respectively.
However, AFA noted that sugar farmers have been calling for the removal of the impact of value-added tax on transport costs of sugar which they say is killing the industry.
By Obegi Malack | obegimalack@gmail.com
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