The decline in retail food prices in the country can be attributed to continued exchange rate stability and reductions in pump prices, according to the Central Bank of Kenya’s agriculture sector survey. Additionally, an increase in food supply resulting from favorable rainfall has also played a role in driving down prices. In July, retail prices for key food items decreased 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.”
In addition to ensuring that farm inputs are of the highest quality through enhanced surveillance, checks, and control mechanisms, the recommendations include making fertilizer collection centers more accessible to farmers and intensifying the provision of extension services, particularly through agronomists.
It is also proposed that units of measurement for farm produce be standardized to protect farmers from exploitation by middlemen and brokers. Prioritizing irrigation to reduce agriculture’s vulnerability to weather fluctuations is another key consideration.
Furthermore, measures to mitigate price volatility should be implemented, such as allocating more funds to the National Cereals and Produce Board (NCPB) for purchasing surplus output during times of excess supply.
This involves increasing storage facilities for cereals and other products, as well as prioritizing the development of food markets.
The survey included 272 respondents, comprising wholesale traders, retailers, and farmers from various regions, including Nairobi, Kiambu, Kajiado, Machakos, Naivasha, and Gilgil. Other participants came from Nakuru, Narok, Bomet, Kericho, Kisumu, Mombasa, Kisii, Eldoret, Kitale, Nyandarua, Nyahururu, and Mwea, as well as Machakos, Isebania, Meru, Nyeri, Isiolo, Oloitoktok, Namanga, Makueni, Molo, Kakamega, and Bungoma.
