Agriculture Principal Secretary Sicily Kariuki said Kenya has a daily stock of about 8,000 tonnes. PHOTO | FILE
What you need to know:
West Kenya, the second largest miller in terms of production, has resumed production after a 45-day break for annual maintenance.
Kibos factory is also up and running after a technical hitch that had led to its closure was rectified.
Several millers, including Mumias Sugar Company which commands 28 per cent of the market, had stopped production to undergo maintenance, a move that led to a shortage of the sweetener.
Sugar production in the country is set to stabilise after two factories resumed operation this week.
West Kenya, the second largest miller in terms of production, has resumed production after a 45-day break for annual maintenance.
Kibos factory is also up and running after a technical hitch that had led to its closure was rectified.
Agriculture Principal Secretary Sicily Kariuki said the situation was about to normalise. The two millers will add more than 400 tonnes of sugar to the market daily.
Ms Kariuki said that the country has a daily stock of about 8,000 tonnes which will help stabilise the market.
The optimum daily stocks to be held by millers should be below 9,000 tonnes.
“The situation is almost normalising and consumers are poised to enjoy affordable sugar prices after the two factories resumed operation,” said Ms Kariuki.
A number of millers, including Mumias Sugar Company which commands 28 per cent of the market, had stopped production to undergo maintenance, a move that led to a shortage of the sweetener.
The situation saw the government allow imports to bridge the deficit of the commodity.
“To mitigate this apparent undersupply by local mills and insulate the consumer from the resultant price hikes, 8,053 tonnes of sugar was allowed entry into the domestic market in October,” she said.
A further 11,237 tonnes of imports was licensed in November. The factory price of a bag of sugar has been falling from a high of Sh5,300 in October to Sh4,000 at the beginning of December.
She said the government had intensified surveillance to curb illegal sugar imports, adding that plans were underway to insulate the market against unfair trade practices.
Ms Kariuki said that an inter-agency enforcement unit; which comprises Kenya Ports Authority, the public health sector, Agriculture ministry, Kenya Bureau of Standards, the Police Service and Kenya Revenue Authority had been set up to check unlicensed imports.
The ministry was prioritising strategies that make the industry more competitive and less attractive to low cost sugar imports, she said.
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