Kenya - Hunger, high inflation loom after heavy rains hit farms

28.05.2024 472 views

Kenyan households are now staring at a spike in prices of select food commodities in the aftermath of the heavy rains that led to the loss of lives, disrupted agricultural activities, and destroyed crops.

The torrential rains witnessed in the country in the better part of this month, causing floods, also had a significant impact on road infrastructure, cutting off access to markets and key commercial hubs.

According to the National Disaster Operations Centre (NDOC), at least 9,973 livestock had also been lost as of May 10.

The rains also destroyed about 41,562 acres of cropland, 61 roads damaged, 886 businesses, 1,967 schools, 1,465 water sources and 62 health facilities were damaged in 11 out of 42 counties affected by floods, according to authorities and the Kenya Red Cross Society.

Already, retail prices of commodities such as onions, tomatoes, oranges and potatoes have gone up, which could lead to a rise in inflation-the measure of the cost of living.

A spot check by the Star shows a single bulb onion in Nairobi’s estates is going for an average Sh10, the same as a regular-sized tomato.

A kilo of red dry onions at Wakulima, Gikomba and Ruai markets is retailing at between Sh180 and Sh200. In supermarkets, prices are at a high of Sh250 for a kilo.

Tomatoes are going for up to Sh190 per kilo in retail stores with market prices averaging Sh120-Sh140.

“This time the rains have been more of a curse than blessing. If you go to the farm gate, there is a lot of wastage and destruction in the farms so getting quality products to bring to the market is becoming a challenge,” Simon Mwangi, a truck driver who delivers fresh produce at Nairobi's Marikiti market, told the Star.

Roads have also been impassable in remote areas for a couple of weeks, he noted, affecting the supply of commodities, which has triggered the price jump not only in Nairobi but almost all major towns across the country.

This is a further increase from last month where the Kenya National Bureau of Statistics (KNBS) inflation data shows prices of onions went up by 5.8 per cent in April when a kilo was retailing at an average Sh177.02, up from Sh167.28 in March.

Last month, prices of tomatoes and potatoes also went up by 4.3 per cent and Sh1.9 per cent, to an average Sh91.25 and Sh111.82, respectively.

Prices of beans, sukuma wiki, maize flour, avocadoes, wheat flour, maize grain and sugar went down.

However, some of these crops including maize, sorghum, groundnuts, bananas, vegetables and millet have been destroyed in farms, amid fears of a harvest catastrophe.

According to Agriculture Principal Secretary Paul Ronoh, the detrimental effects of floods on food security have become increasingly evident, with widespread waterlogging wreaking havoc on crop production.

"Agriculture has borne the brunt of the flood fury unleashed by climate change. The destructive power of floods has been witnessed by all," Ronoh said.

According to Murriki Gatimbu, a large-scale farmer in Isinya, Kajiado County, the current situation, which has seen crops rot in farms, adds up to challenges farmers are facing, including lack of quality seeds and financing, which affects production in the country hence the heavy imports from neighbouring countries mainly Tanzania.

The country produces a paltry 26 per cent of the onions consumed in the market, with 74 per cent of imported mainly from Tanzania, according top the Agriculture and Food Authority (AFA).

The little that is locally produced is also of low quality according to the authority, amid post-harvest losses, poor management and storage, low quality seeds and onion diseases.

Other East African countries have also been affected by the heavy rains, meaning countries are likely to cut exports to meet respective local demands.

Speaking to the Star on the telephone yesterday, COMESA- EAC Horticultural Accelerator (CEHA) regional coordinator, Apollo Owuor, said the markets are facing an “imbalance in supply”, with the price increases as a result of crop destruction.

“Flooding and high diseases coming with the heavy rains affect production with crop failure in some incidences. However, those in raised ground including tree crops may have a chance of survival,” Owuor noted.

The recent heavy rains also impacted the transport sector, health, education, and tourism, which could reverse gains recorded in the country’s growth and lower inflation, which dropped to a two-year low last month.

KNBS reported the country’s April inflation at a low of five per cent, compared to 7.9 per cent in a similar month last year.

Inflation was at 6.9 per cent in January this year, before dropping to 6.3 per cent and then 5.7 per cent in March, mainly as a result of lower food and fuel prices.

“Food inflation has continued to decline with improved supply of key food items, particularly cereals and edible oils,” the Central Bank of Kenya notes.

The World Bank is however worried that floods could significantly reduce the ability to increase maize production in a region, which is already facing a shortage.

While CBK in its March 2024 Agriculture Sector Survey indicated inflation was expected to continue decreasing, on account of lower food prices in line with the favorable weather conditions, the appreciation of the exchange rate, and the reduction in fuel prices, increased rainfall could lead to “panic sales “ by farmers who fear losses arising from spoilage, governor Kamau Thugge noted.

CBK however expects a strong economic performance, buoyed by robust activity in the agriculture and service sectors, particularly accommodation and food services, and information and communication.

A key risk to inflation however remains international oil prices, which have trended upwards since January 2024 largely driven by disruptions to shipping through the Red Sea, and production cuts by OPEC+ and other allied oil producers, Thugge noted.

The government has been keen to reduce the cost of living mainly by increasing production in the agriculture sector, with incentives such as subsidised fertiliser for farmers.

Source - https://www.the-star.co.ke

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