Kenya's average retail sugar price climbed to KSh 167.41 per kilogramme in July 2026, rising for the fourth month in a row. Domestic sugar production hit a record first-half high of 437,852 tonnes between January and June 2026, surpassing the previous peak set in 2022. The price increases have raised questions about whether the government's leasing of four state-owned sugar factories to private investors is delivering results.
Kenya's retail sugar prices continued to inch upward in July 2026, marking a fourth consecutive monthly increase.
Sugar prices in Kenya have risen. Photo: Mumias Sugar Company Ltd.
Source: Facebook
This came even as the country recorded its highest ever first-half sugar output, data from the Kenya National Bureau of Statistics ( KNBS) shows.
The average retail price reached KSh 167.41 per kilogramme in July, up from KSh 164.35 in April, the month when prices were at their lowest this year.
Read also\n\nList of top 10 countries with highest prices of diesel per litre in August 2026
The incremental rises of 0.8% in May, 0.58% in June, and 0.47% in July suggest the earlier downward trend in consumer prices has stalled.
What was Kenya's sugar production in 2026 first half?
Domestic sugar production between January and June 2026 totalled 437,852 tonnes, a 35.2% jump from the same period last year and the highest first-half output on record, eclipsing the previous peak of 410,536 tonnes set in 2022.
Cane deliveries to factories rose even more sharply, climbing 36.2% to 4.93 million tonnes, signalling a significant recovery in raw material supplies following a steep slump in 2025.
Despite this surge in output, retail prices moved in the opposite direction to what many had anticipated, raising doubts about whether higher production volumes are translating into meaningful savings for consumers.
·
Annual #Inflation for July 2026 is 6.5% https://knbs.or.ke/reports/consumer-price-indices-and-inflation-rates-july-2026/…@KeTreasury@Planning_Ke@KenyaGovernors@CBKKenya@KRACare@KIPPRAKENYA@FKEKenya
Copy link to post
The price trajectory stands in contrast to the sustained decline seen between July 2025 and February 2026, when the retail average fell from KSh 186.78 to KSh 166.56 per kilogramme before dropping further to its April low.
Read also\n\nKenya's public debt hits KSh 13 trillion amid William Ruto's borrowing spree
Which sugar mills were leased?
The persistent price pressure also puts a spotlight on President William Ruto's administration's decision in May 2025 to lease four state-owned mills, Nzoia, Chemelil, Sony, and Muhoroni, to private investors under 30-year agreements.
The arrangements were intended to attract capital, upgrade ageing equipment, and sharpen management efficiency across the sector.
The continued price increases raise questions about whether the expanded cane supplies and the shift to private management of those factories are yet producing lower production costs or stronger market competition capable of relieving pressure at the retail level.
Source: TUKO.co.ke
Authors:
\n\nJaphet Ruto (Current Affairs and Business Editor)\nJaphet Ruto is an award-winning TUKO.co.ke journalist with nine years of working experience in the media industry. Ruto graduated from Moi University in 2015 with a Bachelor’s Degree in Communication and Journalism. He is a Business & Tech Editor. Ruto won the 2019 BAKE Awards’ Agriculture Blog of the Year. He was named TUKO.co.ke's best current affairs editor in 2020 and 2021. In 2022, 2023 and 2024, he was the best business editor. Google News Initiative Training on Advance Digital Reporting, Fighting Misinformation, and Experimenting with New Formats (2024). Email: japhet.ruto@tuko.co.ke.Tags:
Western Kenya William Ruto Food Crisis Kenya
Hot:
Girls Incarcerated Kenya Power electricity interruptions Richard Simmons Lizard Lick Towing Krystiana Tiana
