Milk And Maize Prices May Soon Rise As CBK Survey Reveals Mounting Pressure On Kenyan Businesses

A Central Bank of Kenya survey has pointed to rising production and transport costs that could push up the prices of essential foods such as milk and maize. Businesses are struggling to pass the higher expenses on to consumers.

The September 2026 CEOs Survey was conducted ahead of the Monetary Policy Committee meeting. It found that purchase prices rose in the third quarter as companies cited higher fuel and transport costs. Import and other input costs also played a part.

Selling prices however remained largely unchanged. Stiff competition and weak household purchasing power limited what businesses could charge. Most executives expect purchase prices to rise further in the fourth quarter.

Agriculture is among the sectors facing the strain. Seasonal rains and harvesting are expected to support activity but high production and transport costs remain a drag. Dry conditions earlier in the year reduced pasture and pushed up animal feed expenses.

The survey comes days after President William Ruto announced an increase in the farm-gate price for milk from Ksh60 to Ksh65 per litre. Dairy farmers will also receive a bonus of Ksh2 per litre every quarter. He spoke during Mashujaa Day celebrations in Eldoret on October 20 and said the new rate takes effect this month.

The higher farm-gate price does not automatically mean higher retail prices. Collection and processing aswell as packaging and distribution all shape what consumers finally pay.

The Kenya Dairy Board says formal milk deliveries to processors fell by 3.7 per cent between June and July. Fodder shortages were the main cause.

Despite the pressure the survey found that companies were more optimistic about business prospects than in July. Seasonal demand and tourism played a role. Lower borrowing rates also helped.

https://x.com/PeopleDailyKe/status/2112925862698054026

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