Shoppers in a supermarket. Kenyans have been grappling with high commodity prices especially in the food items category. Image: FILE

CBK: Transport and Labour Costs Driving Food Price Instability Despite Good Harvests

High transport and labour costs continue to fuel food price instability in Kenya, even as harvests improve and weather conditions remain favourable, according to a new agriculture sector survey by the Central Bank of Kenya (CBK).

The report shows that 95 percent of respondents identified transport costs as the main factor affecting retail food prices in September 2025, while 83 percent pointed to long distances to markets.

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“Transport costs and market distance were the most commonly cited factors influencing food commodity prices,” the CBK noted in its findings.

Additionally, 79 percent of those surveyed highlighted rising labour costs as another major contributor to price volatility.

While the prices of staple goods such as maize flour, milk, and cooking oil remained largely stable between August and September — a trend attributed to good weather and moderate inflation — traders expect tomato and green maize prices to increase in October due to seasonal demand.

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The CBK cautioned that without better rural infrastructure and cold-storage systems, farmers will continue to face high logistical expenses that eat into their profits and sustain inflationary pressures.

The Bank has called for greater investment in rural roads, storage, and distribution facilities to cushion producers from losses and help stabilize consumer prices, saying such measures are essential to achieving Kenya’s food security and monetary stability objectives.

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