Kenya Has The Most Expensive Per Kilo Of Sugar For Domestic Use In Africa

By Steve Biko / Published May 21, 2023 | 9:18 pm

KEY POINTS

According to Selina Wamucii, a platform that provides market insights for agricultural products in Africa, the approximate price range for Kenya sugar in May 2023 is between US$ 0.75 and US$ 0.59 per kilogram or between US$ 0.34 and US$ 0.27 per pound (lb).

KEY TAKEAWAYS

Sugar is one of the most consumed commodities in Kenya, with an annual per capita consumption of about 20 kg. However, the domestic production of sugar has been unable to meet the demand, leading to high import dependency and high prices for consumers. In this article, we will compare the sugar price per kilo in Kenya with other African countries and explore some of the factors that contribute to its high cost.

Sugar price comparison

The price in Kenyan shilling is KES 82.12 per kg. The average price for a tonne is US$ 753.83 in Mombasa and Nairobi.

To compare this with other African countries, we used the same source and selected some of the major sugar producers and consumers in the continent.

The table below shows the approximate price range for sugar per kilogram in US dollars and local currencies for May 2023.

Sugar

As we can see from the table, Kenya has the highest sugar price per kilo among the selected countries, followed by Nigeria and Tanzania. South Africa has the lowest price, followed by Egypt and Ethiopia.

Factors affecting sugar Prices in Kenya

There are several factors that affect the sugar price in Kenya, both on the supply and demand side. Some of the main ones are:

Low productivity: The average yield of sugarcane in Kenya is about 60 tonnes per hectare, which is below the world average of about 70 tonnes per hectare and far below the potential yield of about 120 tonnes per hectare2. This is due to poor agronomic practices, inadequate irrigation, pests and diseases, and aging varieties of sugarcane3.
High cost of production: The cost of producing sugar in Kenya is estimated at US$ 870 per tonne, which is higher than the world average of US$ 450 per tonne4. This is due to high input costs, such as fertilizers, pesticides, labor, electricity, and transport5. Moreover, the sugar industry suffers from inefficiencies, corruption, mismanagement, and outdated technology.
High import dependency: Due to the low domestic production of sugar, Kenya relies heavily on imports to meet its demand. In 2019, Kenya imported about 450,000 tonnes of sugar, mainly from Brazil, Thailand, India, and Uganda. However, importing sugar is not cheap either, as Kenya faces high tariffs and non-tariff barriers from its trading partners. Moreover, some of the imported sugar is smuggled or dumped into the market at lower prices than the local sugar.
High demand: The demand for sugar in Kenya has been growing steadily over the years, driven by population growth, urbanization, income growth, and changing consumption patterns. Sugar is not only used for direct consumption as a sweetener but also as an input for various industries such as beverages, confectionery, bakery, dairy, pharmaceuticals, and ethanol. The demand for sugar is expected to increase further in the future as these sectors expand.

Sugar is an essential commodity for many Kenyans but also a costly one. The domestic production of sugar has been unable to keep up with the growing demand, resulting in high import dependency and high prices for consumers. The sugar industry faces many challenges that affect its productivity and competitiveness, such as low yields, high costs, inefficiencies, corruption, and trade barriers. To address these challenges and reduce the sugar price in Kenya, there is a need for policy reforms and institutional support.