Central Bank of Kenya (CBK) Governor Kamau Thugge has explained the recent increase in the prices of vegetables, onions and tomatoes.
Speaking during the June 2024 Monetary Policy Committee Media Briefing on Thursday, June 6, Dr Thugge explained that the sharp price increments were occasioned by supply disruptions between April and May 2024.
According to the governor, the supply disruption was caused by the heavy rains witnessed during the period under review.
Therefore, many farmers found difficulties in distributing their produce across the country given that the rains also destroyed roads and caused floods in several parts of the country.
"Prices of onions rose by 67.7 per cent (year-on-year) in May 2024 and contributed 0.4 percentage points to overall inflation from 0.5 percentage points in April.
"Prices of tomatoes rose by 29.7 per cent (year-on-year) in May 2024 and contributed 0.4 percentage points to overall inflation from 0.1 percentage points in April," read the report in part.
Other commodities whose prices also shot up include spinach and sukuma wiki.
Currently, a medium-sized tomato and onion are retailing between Ksh15 to Ksh20 across the major towns and markets in the country.
Conversely, other commodities witnessed a decline in prices in May. This includes; sugar which recorded a sharp price increase last year.
Further, the prices are likely to reduce in June and in the coming months following the resumption in operations at sugar factories.
"Domestic sugar prices continued to moderate from the peak levels witnessed in mid-2023, reflecting improved supply, with the re-opening of sugar factories from October 2023 after shutting down for maintenance.
"The implementation of government measures to improve the supply of sugar through imports continues to moderate prices. Globally, sugar prices have continued to moderate with improved supply, particularly from Brazil," Thugge stated.
