East Africa: Cartels Blamed for Inflated Fertilizer, Cooking Oil Prices in Kenya, Comesa

Nairobi — A new report by the COMESA Competition Commission highlights rising costs in Kenya. Cartels and market concentration are driving up prices for essential goods. This includes fertilizer and cooking oil.

The report is part of a broader investigation in East and Southern Africa. It reveals that Kenyan agro-dealers are marking up fertilizer prices excessively. This keeps prices high, even as global input costs drop.

The report states, "African agri-food markets are not working." It points to high consumer prices and low producer earnings as major issues. Persistent dependence on imports is also a significant problem.

In the edible oils market, Kenyans pay nearly double production costs before VAT. The price differences are especially noticeable in urban areas.

These pricing issues hurt farmers and burden consumers, according to the report. Inefficiencies in transport, storage, and distribution worsen the situation.

The Commission urges member states to improve market surveillance. They recommend overhauling trade regulations and removing non-tariff barriers affecting regional food markets.

These findings come amid growing calls for agricultural reform. Support for smallholder farmers is crucial for food security across Africa.