Six food products which recorded a sharp increase in prices in September, are anticipated to reduce this month according to the Central Bank of Kenya.
Addressing the press during the October 2023 Monetary Policy Committee media briefing, CBK Governor Dr. Kamau Thugge announced that six food products – onions, spinach, cabbage, tomatoes, and potatoes will record a price decrease due to the upcoming harvest season.
It is projected that the harvest will be enhanced by the expected rains, which will lead to increased productivity.
"In September we see a sharp increase in the prices of the 6 items. We see this as seasonal and as the rains return we shall see a sharp reduction in the process," the Governor stated.
Thugge noted that the food items recorded a price increase in September due to increased importation costs from neighbouring countries.
For instance, the CBK Governor explained that onion prices shot up after importation prices from Tanzania increased. In September, a medium-sized onion was being sold between Ksh15 to Ksh20.
The Governor explained that the onions from Tanzania are preferred by Kenyans since they are brighter and have a longer shelf life.
During the September update, it was revealed food items recorded a price increase due to low supply.
In September, potatoes witnessed a significant spike in prices, surging by 18.4 percent.
Cabbage prices also saw a notable increase, rising by 7.4 percent, followed by Sukuma Wiki with a 4.2 percent hike, and tomatoes with a 1.3 percent rise.
Conversely, several other food items are expected to see a decline in prices due to a bumper harvest experienced in the second quarter.
Maize and wheat flour prices are projected to decrease by 5.4 and 3.6 percent respectively.
“The Survey of the Agriculture Sector conducted in the first half of September 2023 showed that the prices of key food items, particularly maize, were expected to decline further with the ongoing harvests in the main maize-producing areas of the country,” CBK explained.
