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Kenya Sugar imports rise 376pc in first nine months of year

BY Soko Directory Team · October 24, 2017 07:10 am

Sugar imports in the nine months to September increased 376 percent compared with last year according to the Sugar Directorate.

A report from the Directorate showed that imported sugar volumes went up to 933,844 tonnes against 219,118 the same period last year due to raised volumes in the country that were meant to protect consumers from higher cost which had arisen from the local shortage.

This marks the first time in the last five years the country has imported huge volumes of sugar, underpinning the severe shortage.

“The increase in table sugar imports is attributed to amplified shortfall due to low local sugar production in the country,” says the directorate.

The report added that the country had in August amassed sugar stocks to run for the next five months, raising hopes for stable prices for the rest of the year.

The increased imports, mainly from Brazil, helped pull down sugar prices to about 100-110 shillings a kilo from a high of 200shillings per kilo in May.

The regulator says traders and millers imported 300,000 tonnes of sugar in August alone as the duty waiver on cheap sugar from Brazil was about to come to an end.

Kenya consumes about 50,000 tonnes of sugar monthly with this figure expected to rise in the coming years due to a growing population.
Sugar production dropped 49 percent between January and September as factories grappled with cane shortage.

The September report from the directorate indicated quantities produced dropped to 252,415 from 493,419 tonnes in the corresponding period last year thanks to dry weather.

Kenya produces about 600,000 tonnes a year, compared with annual consumption of 870,000 tonnes.

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