Kenya’s Sugar Prices Climb for Fourth Month Despite Record Production
Sugar prices in Kenya rose for the fourth consecutive month in July 2026, even as local production hit a historic high in the first half of the year.
By John Mtongoi Newsroom
August 21, 2026
2 min read
Kenya experienced a steady increase in retail sugar prices through July 2026, marking the fourth month of continuous growth amid record-breaking domestic production.
According to data from the Kenya National Bureau of Statistics (KNBS), the average retail price of sugar reached KSh 167.41 per kilogram in July, up from KSh 164.35 in April. This upward trend followed incremental monthly rises of 0.8% in May, 0.58% in June, and 0.47% in July, halting the earlier price decline observed between July 2025 and April 2026.
Record Sugar Output in First Half of 2026
Domestic sugar production surged to 437,852 tonnes from January to June 2026, representing a 35.2% increase compared to the same period last year and setting a new record for first-half output. Cane deliveries to factories also climbed sharply by 36.2%, reaching 4.93 million tonnes, signaling a strong recovery in raw material supply following a downturn in 2025.
Concerns Over Price Increases Despite Higher Production
Despite the significant growth in sugar output, retail prices have continued to rise, raising questions about the impact of increased production on consumer costs. The persistent price hikes contrast with expectations that higher supply would ease prices at the retail level.
The situation also highlights scrutiny over the government's leasing of four state-owned sugar mills—Nzoia, Chemelil, Sony, and Muhoroni—to private investors under 30-year agreements initiated in May 2025. These leases aimed to attract investment, upgrade equipment, and improve management efficiency. However, the ongoing price increases suggest that these measures have yet to translate into reduced production costs or stronger market competition benefiting consumers.
