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Kenya: Sugar output drops 28% in Q1 2017, as compared to Q1 2016 (KSD)

Wednesday, 24 May 2017 21:26

(Ecofin Agency) - Kenya's sugar production hit 172,722 tons at the end of the first quarter of 2017, or 28% less than last year over the same period, reports Business daily africa citing the Kenyan Sugar Board (KSD).

According to KSD, the lower output is due to a poor performance of processing plants in the country, as their raw material input has also slumped amid drought hitting most of the production areas.

However, beyond the unfavorable weather, there are internal issues which are also responsible for the performance and must not be ignored. These include the disinterest of producers in the crop due to the lack of support from the government and delayed payment of the raw material.

Meanwhile, let it be noted that state-owed sugar refineries are ladened with heavy debts and use outdated technologies. This has slowed privatization process which was initiated by the government more than five years ago.

Let us recall that last month, a kg of sugar was traded for Sh136.45. In order to curb the price surge, the government said it will import 100,000 tons of sugar by July, from the from the Common Market for Eastern and Southern Africa (COMESA)

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ECOFIN AGENCY offers a selection of articles translated from AGENCE ECOFIN. Founded in 2011, Agence Ecofin is a leader in Francophone Pan-African economic news, particularly in West and Central Africa. The agency publishes daily news on nine African economic sectors: Public Management, Finance, ICT, Agribusiness, Energy, Mining, Transport & Logistics, Communication, and Training.

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