A recent analysis from the Central Bank of Kenya's (CBK) Agriculture Sector Survey has revealed pricing trends for key agricultural and household commodities in July 2024.
While the market generally experienced a decline in prices for most food items, particularly vegetables, some commodities saw an upward trend, which could impact household budgets across the country.
The survey highlighted significant price reductions in various vegetables, including tomatoes, traditional greens, spinach, kales (sukuma wiki), and onions.
These decreases were largely due to favourable weather conditions that improved supply in local markets.
However, in the month under review, prices of maize products, such as loose maize flour, sifted maize flour, and fortified maize flour, increased providing some relief to dealers who heavily rely on maize business.
“Similar to findings during June 2024, the July 2024 survey revealed that a higher proportion of respondents expected, on balance, substantial declines in prices of loose maize grain, loose maize flour, sifted maize flour and fortified maize flour in the next one month,” the report stated in part.
Sugar prices saw a modest decline, while milk prices remained stable, showing little change from June 2024 levels.
However, the survey noted a few exceptions to the overall trend of declining prices. The price of rice, specifically aromatic unbroken rice varieties like Pishori and Basmati, increased.
“They, however, expected some increase in prices of rice reflecting the adverse impact of excess rainfall/ flooding on domestic production,” the report highlighted.
This rise was attributed to the adverse effects of excess rainfall and flooding, which disrupted domestic rice production, leading to higher costs for this essential commodity.
Looking ahead, the CBK survey anticipates that the price decline trend will continue into August 2024, particularly for fresh vegetables and maize products, as favourable weather conditions are expected to further improve market supply.
However, rice prices may continue to rise due to the ongoing challenges in domestic production caused by excessive rainfall, potentially adding to the financial strain on households that depend on rice as a staple.
Overall, while food prices in Kenya show a positive trend with declines in various key commodities, the increase in rice prices raises concerns for household budgets in light of a dilapidated economy.
