Kenyan onions have shot up in price due to shortages occasioned by a cut in imports from Tanzania. Available data shows that onions are now selling at KSh150 per kilo due to reduced imports from Tanzania. The shortage has been made worse by a fall in local production due to high production costs and drought conditions that have persisted in Kenyan farms in recent years.
Compared to recent months, Kenyan onion prices have shot up by as much as 87.5% from KSh80 per kilogram in March, depending on the variety of onion.
Data from the Kenya National Bureau of Statistics (KNBS) shows that there was a notable increase in the prices for carrots, onions (leeks and bulbs), tomatoes, and maize grain-loose by 9.0%,7.3%, 6.4%, and 5.5%, respectively between May 2023 and June 2023.
Traders are not stockpiling onion
Few Kenyan traders are stocking their piles of produce with onions, citing the high cost of the commodity. According to Benjamin Kamanja, the chairman of traders at Chaka market, they have always relied on Tanzanian onion because of its quality, price, and stable supply.
Consumers also prefer onion bulbs from the neighbouring country because they are well-dried and therefore have a longer shelf life compared to locally grown onions.
Farmers in Tanzania are now selling the onions to Kenyan traders for between KSh115 and KSh120 per kilogram, up from between KSh30 and KSh40 for the same quantity a few months ago, which is five times the previous price.
“There is very little onion coming from Tanzania and we are heavily dependent on their supply. This means that prices will continue to rise because of the shortage,” said the chairman.
ALSO READ: Higher Prices in Key Sectors Drive Kenya’s Annual Inflation to 8% in May
