The millers from Western Kenya, who are experiencing tumultuous times, have expressed fear over cheap sugar selling in the local market that was destined for Egypt.
According to the Standard, stakeholders in the sugar industry fear that the Government may have also released a huge consignment of duty-free sugar which had earlier been seized.
This consignment has in the span of one week driven the price down by a margin of between 14 and 22 per cent.
The millers believe that over 1 million tonnes may have been secretly injected into the economy as a response and advantage of the price increase.
This caused both public and private millers to either sharply drop their prices or be phased out. Sony Sugar Managing Director Bernard Otieno observed that the price drop was “definitely in response to a rise in supply.”
In just one week, millers have experienced a decline in demand leading them to drop prices averagely from Ksh. 6,400 to between Ksh 5,000 and Ksh 5,500 for a 50-kg bag.
Muhoroni Receiver Manager Francis Ooko further noted that despite the decline, processed sugar was still piling in the warehouses.
The country suffered 50 per cent price surge in August this year due to hoarding reports and a ban by the government of imported sugar contaminated by mercury.
Below are the new sugar prices as distributed by companies for a 50-kg bag.
Sony Sugar is now retailing at Ksh 5,800 from Ksh 6,200
Kibos Sugar retails at Ksh 5,000 from more than Ksh 6,000
Muhoroni Sugar now sells at Ksh 5,500 from Ksh 6,300
