5 Commodities Whose Prices Will Rise Next Week

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Kenyans will have to dip deeper into their pockets as commodity prices are set to soar, with some set to rise three times from current prices.

Cooking oil, one of the most basic commodities, would be one of the hardest hit consumer goods whose price is expected to triple within a week.

According to a consumer report, manufacturers reported a 33% increase in the cost of crude palm oil which is used in the production of cooking oil.

Manufacturers say a metric ton of crude palm oil sells for between Kshs 225,522 and Kshs 200,534. They argue that the sharp increase is the result of the ongoing conflict between Russia and Ukraine.

A file photo of maize flour on display in a supermarket in Nairobi.

Manufacturers noted that the same product was selling for Ksh 168,578 before the conflict and doubled from Ksh 72,000 before the March 2020 pandemic.

On average, a liter of cooking oil sells for Ksh 395 and this price is expected to rise to Ksh 950 within a week if no mitigation measures are taken.

To protect the consumer, manufacturers now want the government to scrap the Railway Development Fee (RDF) and Import Declaration Fee (IDF).

Animal feed will also see a spike in prices following the shortage of yellow maize which is an essential ingredient in their production.

Kenya imports most of its yellow maize from Ukraine which is currently at war with neighboring Russia.

Feed producers say they are unable to obtain another source of 100% non-GMO yellow corn from any other part of the world.

Rising feed prices will also increase the cost of milk. A liter of milk currently sells for an average price of Ksh 120, with reports indicating that this price will increase by 30%.

The Russian-Ukrainian crisis has impacted global oil prices which have risen above $100 a barrel and economists have warned that the situation could also trigger higher wheat prices in Kenya.

Kenya is a major importer of wheat from Russia, which means that the mwananchi could dig deeper into their pockets to buy wheat-based products like bread.

Kenyans shop at a local supermarket in Nairobi.

Kenyans shop at a local supermarket in Nairobi.

Daily Nation

Notably, Kenya imports most of its wheat from Russia and the large-scale conflict has created a shortage that has affected the global supply chain, with millers recording low production.

The Russian-Ukrainian crisis has also affected liquefied petroleum gas (LPG) prices, with prices reaching an all-time high in the country.

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