Fertilizer Inspection at a past Event
Kenyan households are facing sharply higher costs for essential commodities such as fertilizer and cooking oil, driven by price manipulation orchestrated by cartels, according to a new report from the Common Market for Eastern and Southern Africa (COMESA) Competition Commission.
The investigation, which reviewed agricultural markets across East and Southern Africa, revealed that traders in Kenya have been imposing excessive markups, particularly on imported agricultural inputs like urea fertilizer and refined vegetable oil. Despite a global decline in prices, local costs have remained unjustifiably elevated, leaving farmers and consumers to shoulder the heavy financial burden.
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“African agri-food markets are dysfunctional, marked by high reliance on imports, low prices paid to producers, and inflated prices for consumers,” the Commission’s report noted, highlighting systemic inefficiencies and concentrated market power in the region.
The study also underscored the detrimental impact of these inflated prices on government subsidy programs, which are increasingly strained. The situation undermines local agricultural production and disproportionately affects low-income households struggling to meet basic needs.
In Kenya, retail prices for cooking oil are nearly twice the actual costs of inputs and production, raising alarm over exploitation by dominant market players.
The report warns that these inflated margins are “squeezing farmers and discouraging production,” with Kenya and Tanzania singled out as examples where urban consumers bear the brunt of dysfunctional agricultural markets.
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To address these challenges, the COMESA Competition Commission has urged for enhanced regulation, improved regional collaboration, and more effective price monitoring. These measures aim to restore fairness within the food value chain and safeguard consumers across Eastern and Southern Africa.
