The latest survey by the Central Bank of Kenya (CBK) has revealed that prices of key household products are set to increase as the country breaks for the festive season.
The CBK survey on the agricultural sector, released on Tuesday, December 10, indicated that the prices of key household products such as sugar, cooking oil, and fat, are expected to rise and are likely to remain high into the next year.
''The Balance of Opinion (BOO) also showed that, on balance, respondents expected the prices of sugar, cooking fat and cooking oil (salad) to increase in December 2024, reflecting developments in the global market where prices of these items have been rising in the recent past,'' the survey by the CBK read in part.
Prices of agricultural products, such as tomatoes, are also anticipated to increase due to the disruption in rainfall.
Most tomato farmers encounter losses in October and November due to the excessive supply, despite the low uptake by buyers.
Consequently, the prices of beans and maize, a staple food in most families in Kenya will go up as well as other dry cereals.
''The expected increase in tomato prices is largely driven by seasonal factors as tomato supply tends to decline during the rainy season and increase when dry conditions set in,'' the survey revealed.
''Respondents also expect an increase in prices of beans, green grams, green maize, maize grain – loose and garden peas in December 2024, largely reflecting seasonality,'' the survey added.
The expected price increase in common products such as sugar comes as the government has ruled out the importation of the product for the next year.
This followed a Cabinet resolution on November 14, this year following the expected production of surplus sugarcane by farmers.
Meanwhile, most Kenyans expressed optimism that inflation levels would decrease over the next three months, in line with the government's projections.
''Results in November 2024 showed that most respondents (52 per cent) expect overall inflation to either remain unchanged or decline in the next three months, compared to 48 per cent who expect an increase,'' CBK added.
