Prices of key commodities among them household products this year were retailing at higher prices while some recorded a drop as the year progressed.
However, some products that were expected to even go lower in terms of their retail prices such as cooking oil defied the expectations and went slightly higher. This dynamism in prices affected fuel prices too, probably leaving Kenyans confused about the changes.
The Central Bank of Kenya (CBK) on Monday, December 9, released an explanation on its end-year Monetary Policy report detailing the changes in prices and what to expect as the year ends.
Edible oils commonly used as cooking oil prices increased in October 2024 and are likely to cross over to the next year due to factors from Asia.
A spot check by Kenyans.co.ke revealed that a 10-litre cooking oil currently retails for about Ksh2,650 up from a price of Ksh2,000 while a three-litre goes for Ksh900.
CBK revealed that higher prices of palm, soy, sunflower, and rapeseed oil contributed to the rise due to lower production in key producing countries in Southeast Asia.
Additionally, the prices increased and will remain so for some time due to increased global demand for biofuels.
''Edible oils price inflation increased in October 2024, driven by higher prices of palm, soy, sunflower and rapeseed oils, attributed to lower production in key producing countries in Southeast Asia,'' the report by CBK read in part.
Kenya for the first time banned the importation of sugar this year after local production rose to a level it could sustain the country for the next year, following a Cabinet resolution on November 14 this year.
The prices will likely remain relatively lower in Kenya and globally, thanks to the improved production in Brazil on account of favourable weather conditions in key sugar-growing areas.
Cereals, another key household product, prices declined and will cross over to next year in the same state due to a decline in inflation and a reflection of India’s removal of export restrictions on non-broken rice.
Fuel Prices
According to the Monetary Policy report, oil prices declined this year despite the heightened political tensions in the Middle East where a majority of the oil-producing nations are located.
The prices also remained stable with a litre of petrol, diesel and kerosene going for Ksh180.66, Ksh168.06. and Ksh151.39 respectively, and are likely to remain so due to increased supply from non-Organization of the Petroleum Exporting Countries(OPEC) oil producers, and weak demand in China.
