Sugar price to Remain high
Kenyans are already paying 32% more than last month to obtain the food additive due to a local and worldwide shortage of sugarcane as well as rumors about a proposal in the Finance Bill 2023 to impose a new tax on sugar.
In response to worries that a provision in the Finance Bill to impose an excise levy of Sh5 per kilogram of sugar has fueled market speculation, several participants in the industry are placing the blame for price increases on a cane shortage that has compelled some millers to buy the raw material from Uganda.
Yesterday, a spot check at several supermarkets in Nairobi and Kisumu revealed that, depending on the brand, a kilo of sugar was selling for between Sh189 and Sh210 and a 2kg package for between Sh419 and Sh440.
Due to decreased factory output and expensive imports, Kenya’s weekly ideal stock of sugar has decreased by 80%.
In order to meet the nation’s daily need, the Sugar Directorate is keeping weekly supplies at 4,000 tonnes as opposed to the ideal amount of 20,000 tonnes. It had issued a warning in January that due to high current global prices and a shortage of the commodity worldwide, Kenya might not be able to obtain sufficient stockpiles of sugar at the international market, even with the introduction of duty-free imports.
Sugar price to Remain high
The gap, according to Jude Chesire, the head of the sugar directorate, was brought on by low factory production, which caused certain millers to reduce their milling due to a severe lack of raw materials.
Mr. Chesire claimed that despite the National Treasury eliminating duty in December, the amounts that have been imported have not reduced prices because they are arriving at excessive prices because of a global shortage and the weak shilling.
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