In a surprising turn of events, Kenya's sugar prices have skyrocketed despite a surge in production and high import of the commodity. This development has raised concerns about the accessibility and affordability of sugar, a staple in many Kenyan households and industries.

According to the Agriculture and Food Authority (AFA), the cost of sugar in Nairobi was recorded at $38 per tonne, with Mombasa close behind at $30 per tonne. These prices are significantly higher compared to other regional markets.

The Sugar Directorate's September 2024 market update reports a continued downward trend in sugar prices, with the weighted ex-factory price falling to Sh5,059 per 50kg bag. Wholesale prices also declined, averaging Sh5,367 per 50kg bag, a 1% drop from August's Sh5,424.

However, despite the rise in production and subsequent drop in factory prices, the price of sugar remains high in some retail shops across Kenya. A spot check conducted by The Star across major retail stores in the city revealed a sharp increase in the cost of sugar prices, in some instances by Sh20, compared to a couple of months ago.

This development has significant implications for the tech and startup community, particularly those involved in the agriculture and food processing sectors. The surge in demand for brown sugar, an essential sweetener for both household consumption and industrial use, has raised concerns about the accessibility and affordability of this critical ingredient.

As Kenya's sugar industry continues to grapple with these challenges, it remains to be seen how the government and stakeholders will address the issue to ensure that sugar remains affordable and accessible to all.