Sugar Imports into the Country Stopped

The Agriculture Fisheries and Food Authority (AFFA) has put a stop to the process of issuing out permits to sugar importers in the country.

This came about after it was discovered that the quantity of unsold sugar stocks from local millers has increased greatly thus leading to very low sugar prices which have greatly affected the local market.

AFFA, which is the Agriculture regulator in the country is in the process of getting the way forward on how it will solve the whole sugar issue as it has been causing chaos between importers and the local millers for a long period of time.

It was disclosed that the required amount of unsold sugar stocks is supposed to be not more than 1200 tonnes, which is not the case currently as the amount that is in stock is 15,000 tonnes.

Imported sugar tends to dominate the Kenyan market as the prices tend to be very cheap as compared to the local sugar from millers. This therefore forces the local millers to try and adjust to the prices thus leading to great losses on their side.

Production rates in the country are said to be very high, and that is the reason why the commodity tends to be abit expensive as compared to the imported one. Consumers go for the cheap ones leaving behind the local sugar unsold.

The Kenyan sugar industry has been in anguish starting from being funded poorly by the government to its high production rete that has not been looked into. It was disclosed that most of the sugar factories in the country have broken down and no measure has been taken towards installation of new and modern ones.

Before the closure of imported sugar came about, the regulator had earlier on cut sugar imports by 20 per cent but that did not help thus the move to close the importation process completely until further notice.

Currently, the cost of a 50 kilogramme bag of sugar went for Sh.3,000, from Sh.5,000 in December last year.

Article by Vera Shawiza.