Central Bank Of Kenya Says Food Prices Have Dropped, Expects Further Decline

• The Central Bank of Kenya's (CBK) sixth Agriculture Sector Survey was conducted between July 11 to July 15, 2023
• During the period under review, retail prices of most vegetables and non-vegetables declined significantly
• For instance, farmers in the Mt Kenya region reported a bumper harvest of tomatoes, while maize prices dropped as harvesting began

It is a relief for Kenyans as the prices of food have dropped. This is according to a survey by the Central Bank of Kenya (CBK).

The sixth Agriculture Sector Survey was conducted between July 11 - July 15, 2023, and noted prices of most vegetables and non-vegetables decreased during the period.

"Retail prices of most vegetables and non-vegetables declined significantly and are expected to decline further.

The supply of key food items is expected to increase in the coming months as the harvest from Eastern, South Rift and Western start reaching the markets," CBK stated.

However, CBK said the price of sugar and onions remains high.

Why did tomato and maize prices drop?

The Central Bank of Kenya revealed maize and tomato prices dropped due to increased production.

For instance, farmers in the Mt Kenya region reported a bumper harvest of tomatoes.

"Tomato farmers revealed that supplies from the main source markets in Ndaragwa, Kirinyaga and other local farms had increased significantly leading to a significant reduction in prices.

The price of maize reduced in July 2023 as harvests from the lower Eastern, South Rift and Western commenced. However, the price of some fortified maize flour, sifted maize flour, onions and sugar remained elevated on account of a shortage in supply due to reduced production," it stated,

The regulator expects the retail prices of cereals, grains and their end products to either decline or remain unchanged.

At the same time, packeted and unpacked milk prices declined in July 2023 on account of increased pasture which led to a reduction in the purchase of animal feeds.

Nandi trader speaks on taxes

Despite the reported drop in food prices, traders lamented the high taxes following the implementation of the Finance Act 2023.

Irene Cheptap Oret Age, who sells chapatis and other types of food, said Kenyans may not enjoy cheap meals due to excessive taxation.

"The new taxes will affect my business because the cost of living will be high; hence the commodities' prices will shoot. I don't know how I will price my chapatis cause I can't compromise on the quality. But I am hoping God to see me through," she told TUKO.co.ke.

What's Kenya's inflation?

The Kenya National Bureau of Statistics (KNBS) reported a significant drop in the inflation rate from 7.8% reported in June 2023 to 7.3% in July 2023.

KNBS attributed the rising inflation for the past 12 months to the continued increase in food and fuel prices.

The drop in July 2023 inflation resulted from a reduction in prices of most food items like vegetables.