For 4th consecutive month: Sugar prices rise despite increased local production
This story has significance for readers across Kenya and beyond.
- Kenya's average retail sugar price climbed to KSh 167.41 per kilogramme in July 2026, rising for the fourth month in a row
- Domestic sugar production hit a record first-half high of 437,852 tonnes between January and June 2026, surpassing the previous peak set in 2022
- The price increases have raised questions about whether the government's leasing of four state-owned sugar factories to private investors is delivering results
Kenya's retail sugar prices continued to inch upward in July 2026, marking a fourth consecutive monthly increase.
This came even as the country recorded its highest ever first-half sugar output, data from the Kenya National Bureau of Statistics (KNBS) shows.
The average retail price reached KSh 167.41 per kilogramme in July, up from KSh 164.35 in April, the month when prices were at their lowest this year.
The incremental rises of 0.8% in May, 0.58% in June, and 0.47% in July suggest the earlier downward trend in consumer prices has stalled.
What was Kenya's sugar production in 2026 first half?
Domestic sugar production between January and June 2026 totalled 437,852 tonnes, a 35.2% jump from the same period last year and the highest first-half output on record, eclipsing the previous peak of 410,536 tonnes set in 2022.
Cane deliveries to factories rose even more sharply, climbing 36.2% to 4.93 million tonnes, signalling a significant recovery in raw material supplies following a steep slump in 2025.
Despite this surge in output, retail prices moved in the opposite direction to what many had anticipated, raising doubts about whether higher production volumes are translating into meaningful savings for consumers.
The price trajectory stands in contrast to the sustained decline seen between July 2025 and February 2026, when the retail average fell from KSh 186.78 to KSh 166.56 per kilogramme before dropping further to its April low.
Which sugar mills were leased?
The persistent price pressure also puts a spotlight on President William Ruto's administration's decision in May 2025 to lease four state-owned mills, Nzoia, Chemelil, Sony, and Muhoroni, to private investors under 30-year agreements.
The arrangements were intended to attract capital, upgrade ageing equipment, and sharpen management efficiency across the sector.
The continued price increases raise questions about whether the expanded cane supplies and the shift to private management of those factories are yet producing lower production costs or stronger market competition capable of relieving pressure at the retail level.
Source: TUKO.co.ke
Reporting originally appeared via TUKO. Read the full source for additional context.