Kenya's Sugar Prices Hit Record KSh 500 Per 2kg, Other Basic Items Whose Prices Have Spiked

• Kenya National Bureau of Statistics (KNBS) data reported a slight decrease in inflation from 7.9% in June to 7.3% in July 2023
• Food prices remained relatively high at 8.6% as fuel prices soared by 14.5% during the same month under review
• Sugar prices continued to increase amid speculations of a supply shortage as the government halted local production
• Prices of Liquified Petroleum Gas (LPG) drop significantly after the state removed 8% Value Added Tax (VAT)

Kenyans continue to feel the heat even as inflation eased to 7.3% in July 2023, below the Central Bank of Kenya (CBK) target of 7.5%.

Data from the National Bureau of Statistics (KNBS) showed that food and fuel prices increased by 8.6% and 14.5%, respectively, during the same month under review.

Why have prices of sugar in Kenya increased?

Prices continued to rise following a drop in sugar supply, even as the government halted the local sugarcane milling in Western Kenya.

A spot check by TUKO.co.ke indicated that 1kg of sugar retailed at between KSh 240 and KSh 260, up from an average of KSh 200 in May 2023, across supermarkets and small retail shops.

A 2kg packet sold for around KSh 490 to KSh 510, crossing the KSh 500 mark for the first time in the country's market history.

The government introduced an excise duty of KSh 5 per kilogramme of imported sugar in the Finance Act 2023, which was recently implemented.

Unga prices

The prices of maize flour remained relatively high at between 210 and 260 per 2kg packet, depending on the brand.

A 2kg packet of Ajab maize flour retailed at KSh 221 in Naivas Supermarket as of August 3, 2023, up from an average of KSh 187 in July and KSh 167 reported in May 2023.

Ndovu retailed at KSh 200, while high-end brands like Hostess and Amaize sold at KSh 260 and KSh 250 per 2kg, respectively.

Maize prices increased by 18.4%, retailing at an average of KSh 5,000 per 90kg bag, according to the July 2023 inflation data.

1 litre of cooking oil price

A litre of cooking oil retailed at around KSh 250 and KSh 290, depending on the brand.

The price of a two-litre cooking oil ranges between KSh 500 and KSh 560, depending on the brand, across supermarkets.

CBK data showed cooking oil prices reported a significant drop of 17.9%, during the same month under review.

Fuel prices

Fuel prices climbed the roof by 14.5%, even as the Energy and Petroleum Regulatory Authority (EPRA) affected the 16% Value Added Tax in the Finance Act 2023.

A litre of super petrol, diesel and kerosene increased by KSh 13.49, KSh 12.39 and KSh 11.96, respectively.

But there was a significant drop in prices of Liquified Petroleum Gas (LPG) by 10.1% in July 2023.

A 13kg cooking gas cylinder was refilled at an average of KSh 1900, while a 6kg cylinder refill cost dropped from KSh 1050 to KSh 850 as of August 3, 2023.