The Central Bank of Kenya (CBK) has released an agricultural survey projecting a decline in some basic food items this month.
According to the survey, the drop is supported by favourable weather conditions, continued price offers in various outlets, and government interventions.
CBK noted that prices of loose maize grain, green grams, and beans have been generally lower in the first quarter of 2024 compared to their respective levels in similar quarters in 2022 and 2023.
The prices of various rice varieties have remained relatively stable in the first quarter of 2024, supported by local rice harvest in the period December 2023-February 2024. In March 2024, all rice varieties experienced a slight price declines, except Pishori rice whose price increased slightly relative to February 2024, CBK explained.
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According to the survey, the key basic items will register a drop in April.
"On balance, the BOO points to an expected general decline in prices of most food items in April 2024," CBK noted.
"This mainly reflects the continued impact of favourable weather, the recent appreciation of the Kenya shilling in March 2024 compared to February 2024 and the substantial reduction in pump prices in March 2024," it added.
Some of the items whose prices are expected to drop include vegetables, maize, beans, milk and bread. Maize flour was also projected to remain stable similar to prices of sugar and cooking oil.
"The price of processed and unprocessed milk is expected to remain stable, supported by increased pasture resulting from favourable rainfall. Price expectations for vegetable items including kales/sukuma wiki, cabbages, spinach, and traditional vegetables in the March 2024 survey were not significantly different from the February 2024 survey. The weather conditions have been favourable for growing of fresh vegetables," the survey indicated.
"Expectations about prices of cooking oil and cooking fat in March 2024 survey point to a marginal decline in April 2024. This was informed by the observed easing of international prices of edible oils following recovery of global palm oil production and the relatively stronger Kenya shilling in March 2024."
However, it maintained that the prices of onion will increase due to the increased demand in the East African Community.
