Kenyans are set to witness an increase in sugar and cooking oil prices from this month, with a report by the Central Bank of Kenya (CBK) attributing the expected changes to several factors, including government policies.
In its survey report with agricultural stakeholders in July, CBK documented that many respondents projected a price increase following uncertainties over the move by the government to lease sugar companies to private operators.
Equally, the report highlighted that there would be a reduced cane supply to the sugar factories.
"This expectation was largely driven by the observed increases in sugar prices in July 2025 relative to June 2025, uncertainties about sugar prices following the leasing of sugar companies to private operators, a reduction in cane deliveries to factories, and the possible shutdown of sugar factories for periodic maintenance," read the report in part.
Currently, in most retail shops, a 2kg packet of sugar averagely retails for Ksh340.
On the other hand, for cooking oil, Kenyans spend between Ksh1,400 to Ksh1,700 for the 5 litres, depending on the brand. For the 3 litre cooking oil, Kenyans currently spend between Ksh860 Ksh900.
The 1 litre is priced between Ksh280 and Ksh300.
Food Price Drop
Some food items are also expected to drop in prices this month, especially cereals such as maize.
"Despite the concerns about sugar prices, food prices are in general expected to remain stable with a downward bias in view of the favourable March-May long rain season in most regions.
"This is expected to continue supporting fast-growing vegetable items, particularly kales-sukuma wiki, carrots, potatoes, onions, traditional vegetables, cabbage, and spinach," read the report in part.
Respondents in the survey noted that there would be minimal price changes for maize products and related items in view of the ongoing and expected harvests of cereals in some parts of the country, especially the lower eastern part of the country.
Rice prices are also expected to drop, given that global rice prices have been declining due to increased production in key rice-growing regions.
Already, the government is expected to import 250,000 metric tonnes of rice to address the current shortage.
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