Homes, firms feel heat of high charcoal prices

Sacks of charcoal by the roadside along city park road in Parklands, Nairobi on October 17, 2021. 

Photo credit: Lucy Wanjiru| Nation Media Group

The cost of a kilogramme of charcoal hit a 54-month high of Sh84.41 in July, new data by the Kenya National Bureau of Statistics (KNBS) shows, on demand from households and businesses.

This is the highest price of the cooking fuel since January 2020 when it stood at Sh152.25 and marks an 18.97 percent year-on-year jump from the Sh70.95 average retail price in July last year.

The monthly average price has been on a constant steady rise since August last year when it stood at Sh70.73, recording the fastest month-on-month growth during the period in May this year when it rose 3.5 percent to Sh82.32 from Sh79.50 in April.

Charcoal is one of the main sources of cooking fuel in Kenya, particularly for low-income segment of the population.

The product is also commonly used by small businesses such as restaurants, hotels, and roadside sellers to prepare meals.

In 2023, for instance, charcoal use hit 35,900 cubic-metres, which is more than double the 15,500 that were used in the previous year.

The jump in charcoal prices comes at a time when the cost of the alternative cooking gas has held stable at an average high of between Sh3,200 and Sh3,300 even though kerosene prices edged lower in the period to July.

KNBS data shows that the cost of a 13-kilogramme cylinder of cooking gas stood at Sh3219.58 in July, up from Sh3,213.97 in June-bucking a change in May when the price of the commodity dipped to Sh3,221.29 from Sh3,242.11 the previous month.

Comparatively, the price of kerosene which is used by many poor households for cooking and lighting has fallen steadily throughout this year to hit Sh162.52 per litre in July down from Sh194.96 in January, representing a 19.96percent slump.

The rise in charcoal prices comes despite the lifting a six-year ban on logging by President William Ruto in July 2023. The government had banned logging in 2018 to protect the country’s forests and preserve water towers.

The use of dirty fuels such as firewood and charcoal has been problematic for the Kenyan government, which has been keen to project its green energy credentials.

As a result, the government has in recent years moved to incentivise the use of clean cooking methods to reduce the country’s carbon emissions and enhance Kenya’s image as a green energy powerhouse.

For instance, in the Finance Act of 2023 the State zero-rated value-added-tax on cooking gas, which helped bring down the cost of the product as the State moved to promote clean cooking.

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