Nairobi Star (Nairobi)
Winfred Kagwe
23 December 2011
THE country’s’ sugar production has reached the lowest level in 10 years, worsening the pain for consumers who are already paying a high price for it.
According to Kenya Bureau of Statistics , sugar production declined by 38.6 per cent between July and September to 74 200 metric tonnes due to declining cane delivery to the millers. A year ago, production was at 120 800 metric tonnes yet the annual demand for sugar stands at 800 000 MT.Currently consumers are paying between Sh190 to Sh200 for a kilo of sugar.
The quarterly statistics showed sugarcane delivered declined from 1.31 Metric tonnes to 956300 metric tonnes fueling the sugar the shortage. The statistics showed the effects of high oil prices, weak shilling and food shortages have been spreading across the different sectors resulting to a 3.6 per cent economic growth in the third quatre compared to 5.7 per cent last year. ” A number of factors , in particular the sharp rise in oil and food prices , have constrained growth since the start of the second quatre,” said the KNBS report.
Inflation averaged at 16 per cent in the third quatre. The Electricity and water supply sector was worst hit by the high fuel prices recording a negative12.1 per cent slump,down from a 17.1growth a year ago. “Heavy reliance on electricity derived from thermal generation- which was affected by high diesel cost- resulted to the notable decline,”said the report.
Growth in the financial sector also slowed to 6.0 per cent from a high of 10.6 per cent in 2010 due to the weak shilling, increasing interest rates and slow activity at the equity markets. Manufacturing sector recorded just 1.1 per cent from 5.7 per cent growth in 2010 while retail and wholesale trade also slowed to 1.3 per cent as consumers spent less due to inflationary pressures.
However, the agriculture sector grew at an improved 4.8 per cent backed by increased production and incomes of coffee, tea and horticulture sub-sectors Transport and communication sector also grew by 4.5 per cent , higher than the 3.0 per cent last year. “The sectors expansion was supported by increased port activities and significant growth in the number of tourist arrivals”said the report.
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