Consumers are set to pay more for sugar after the ex-factory price rose by Sh400 for a 50-kilogramme bag with the regulator attributing the increase to a crack down on illegal sugar cartels.
Millers are selling the commodity at more than Sh3,600 per bag from Sh3,300 per bag last month and said they had been receiving more orders of late.
"It is a decision based on demand and supply," he said.
"We have not adjusted our shelf prices, and we will not do so until when we get new stocks with an increased price from what we have been buying at," Uchumi's chief executive
Currently, the price of a two-kilogramme packet of sugar retails at Sh250.
Kenya Sugar Board chief executive Rosemary M'kok said that cartels behind illegal imports had retreated because of ongoing crackdown.
"We have outsourced a team that is carrying out the surveillance on behalf of the Kenya Sugar Board and they have done a good work for the board," she said.
The surveillance includes testing of all packaged sugar in transit to authenticate its origin, forcing the illegal merchants to keep house.
"Factories are grappling with high volumes of processed sugar yet supermarkets and shops are not complaining of sugar shortages.
"This means they are procuring cheaply from the illegal traders," said Agriculture secretary Felix Koskei recently after a consignment of contraband sugar was impounded.
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