- Kenyans will be expecting a general decline in food prices in the next three months
- Weather conditions, transport and input costs continue to impact both output and price of key food items
Image: JACKTONE LAWI
Image: JACKTONE LAWI
Continued exchange rate stability and reductions in pump prices triggered the decline of retail food prices in the country.
This is according to the Central Bank of Kenya's agriculture sector survey.
Increased food supply occasioned by favourable rainfall also contributed to the drop in prices.
Retail prices of key food items declined in July compared to June, 2024.
“Prices of tomatoes, kales/sukuma wiki, spinach, traditional vegetables, carrots, onions, potatoes, garden peas and potatoes showed a price decline compared to the previous month," the survey showed.
"There was a marked decrease in prices of cereals and cereal products mainly supported by the bumper harvest following favourable weather conditions in October-December, 2023, and March-May, 2024, rain seasons.”
It further confirmed lower prices of loose maize flour, sifted and fortified maize flour in July, compared to June, 2024.
“The ample rainfall also supported growing of pasture leading to observed stability in prices of milk both in June and July, 2024,” the survey reads.
Kenyans will be expecting a general decline in food prices in the next three months.
“Weather conditions, transport and input costs continue to impact both output and price of key food items.”
The Agriculture Sector Survey was conducted from July 18-22, to obtain information on trends and market expectations of prices and output of key agricultural commodities.
“60 per cent of farmers sampled benefited from the subsidised fertiliser, a key input in crop production, compared to about 71 per cent reported in the May 2024 survey.”
Several measures were recommended for the government's consideration, to ensure farmers are incentivised to increase production.
Extension of the national subsidised fertiliser programme to cover other essential inputs, particularly seeds and pesticides/herbicides, was recommended.
“This can be done by reducing or zero-rating VAT on farm inputs.”
This is in addition to ensuring farm inputs are of highest quality by enhancing surveillance, checks and control mechanisms.
“Ensure fertiliser collection centres are closer to farmers, intensify provision of extension services to farmers particularly agronomists,” it recommends.
Also proposed is the standardisation of units of measurement of farm produce, to protect farmers from exploitation by middlemen/ brokers.
Prioritising irrigation to reduce the vulnerability of agriculture to the dictates of weather should also be considered.
Measures to reduce price volatility, for instance, by allocating more funds to the NCPB to purchase more output during periods of excess supply should also be implemented.
“This is in regard to increasing storage facilities for cereals and other products and also prioritising building food markets.”
The survey drew 272 respondents ranging from wholesale traders, retailers and farmers in Nairobi, Kiambu, Kajiado, Machakos, Naivasha and Gilgil.
Others were Nakuru, Narok, Bomet, Kericho Kisumu, Mombasa, Kisii, Eldoret, Kitale, Nyandarua, Nyahururu and Mwea.
Participants from Machakos, Isebania, Meru, Nyeri, Isiolo, Oloitoktok, Namanga, Makueni, Molo, Kakamega and Bungoma also gave their views.