Prices of Select Food Items Set to Increase – CBK Survey

Kenyans have been urged to brace for a significant increase in the prices of several essential food-related commodities starting February this year.

According to the Agriculture Sector Survey report released by the Central Bank of Kenya (CBK) on Tuesday, February 11, the prices of cereals and related products are set to increase for the second consecutive month this year.

The survey, which drew respondents from select wholesale and retail markets and select farms also revealed a possible hike in the prices of kale, traditional vegetables, cabbages, spinach, tomatoes, potatoes, sugar and cooking oil.

The imminent increase in the prices was attributed to the severe impact of inadequate rains during the short rainy season between October and December last year.

The report indicated that inadequate and unprecedented rainfall led to seasonal drought, which caused crop wilting and contributed to the overall low crop yield.

Another factor contributing to the potential rise in food prices was the possible increase in oil prices on the international market, mainly driven by uncertainties surrounding the Middle East conflict.

Furthermore, respondents stated that modest increases in the prices of certain essential food items in the global market, particularly processed products such as sugar, cooking fat, and vegetable oil, were likely to impact local prices.

The unprecedented rise in food prices was expected to affect overall inflation, which is projected to increase over the next three months.

However, despite the anticipated rise in the prices of several commodities, the survey highlighted a potential price drop for different varieties of rice and dairy products.

Similarly, overall farm output was projected to increase in the coming months due to the favourable rainfall expected between March and April this year.

Favourable government policies, such as the distribution of subsidised fertiliser, were also expected to boost production among farmers, increasing the likelihood of a drop in food prices in the coming months.

The latest CBK survey report comes days after the Kenya National Bureau of Statistics (KNBS) released its survey report which projected an increase in the price of 8 essential commodities.