Kenya to import 100,000 tonnes of sugar duty-free
Sugar merchants in Kenya have up to March 31st next year to import the sweetener on duty-free terms to help plug yawning supply gaps of the commodity.
In a gazette notice dated 22 December, Treasury Cabinet Secretary Prof Njuguna Ndung’u notified that the country needs to import at least 100,000 metric tonnes of sugar in three months.
The prices of sugar, along with other basic commodities such as maize, maize flour, as well as cooking oil have been on an upward spiral eroding consumer budgets while also pushing up inflation.
The average retail price of Sugar in Kenya has increased to Kes312 for a two-kilo packet, up from Kes230 in June.
Inflation in Kenya hit 9.6 percent in October, increasing from 9.2 percent in September, driven largely by a general rise in the cost of food. In November, however, inflation eased marginally to 9.4 percent.
“In light of the notification of the current sugar crisis in the country by the Cabinet Secretary for Agriculture and Livestock Development, the Cabinet Secretary for the National Treasury and Economic Planning directs that 100,000 metric tonnes of brown or mill white sugar may be imported into the country duty-free not later than the 31st March 2023,” Prof Ndung’u notified the public.
Read also: Potatoes, Sugar and other goods that pushed October inflation to 9.6 percent
According to the Sugar Directorate of Kenya, total production in August was 46,459 tonnes, a sharp decline from 70,278 tonnes that were realized in July.
The 34 percent drop in output was attributable to the closure of many factories for maintenance even as raging dry weather caused scarcity of mature cane.
Last month, Head of the Sugar Directorate Wilice Audi told Business Daily that Kenya might not get all the required sugar by end of December because of a tight supply of the commodity in the global market.
“There is a shortage of sugar in our source markets and this, coupled with prevailing high prices has seen traders lag in imports,” said Mr Audi.
At the same time, Prof Ndung’u has gazetted the importation of duty-free maize and rice into the country to address current deficits.
Prof Ndung’u directed the importation of 900,000 metric tonnes of white maize and 600,000 metric tonnes of rice between February 1st and 6th August 2023.
Kenya alongside Somalia, Ethiopia, Sudan, and South Sudan is currently experiencing one of the most alarming food crises in a half-century.
Severe drought, due to the failure of four consecutive rainy seasons, has left over 4.4 million people in the country facing hunger and thirst. The drought has also wiped out close to 2.5 million livestock.
