Sugar prices in the country are expected to increase to a record high due to reduced harvests in India and Thailand caused by heavy rains that ravaged the crops.
India, a key supplier of sugar to Kenya, has already started limiting exports, impacting over 1,000 known local importers.
India's decision to cut its exports stems from adverse weather conditions linked to El Niño, resulting in crop damage and subsequently, subpar harvests.
The consequence is already being felt in international markets, ushering in a period of unprecedented strain on the sugar industry.
The United Nations Food and Agriculture Organisation (FAO) has already warned that there will be a 2 per cent global sugar production decrease in the 2023-24 season translating into 3.5 million metric tonnes.
According to FAO, the 3.5 million metric tonnes deficit will largely hit developing nations like Kenya as developed countries are able to absorb the higher costs instead of passing them on to the consumer.
Due to the lower shipments coming from India, Kenya has been turning to neighbouring Uganda to cover its sugar deficit.
This has led to Kenyans buying the commodity at high prices from Uganda.
After India limited sugar exports to protect the local economy in May, Kenya bought 68 per cent of its sugar from Uganda.
According to the Sugar Directorate, this led to Uganda dethroning India as the largest exporter of the commodity to Kenya.
In July, India again became the highest exporter of sugar to Kenya with 624 suppliers from the Asian country sending 24 metric tonnes of Sugar to Kenya.
Following the poor harvest in India, Kenya will again turn to Uganda for sugar which is estimated to be 43 per cent more expensive than one bought from India according to the Sugar Directorate.
Currently, the price of a 2-kilogram packet of sugar retails at an average of Ksh420 in Kenyan supermarkets.
