Fruit prices at Busia border rising on weakening shilling

Fruit prices along the Kenya-Uganda border have gone up following the weakening Kenya shilling.

The unsteady supply of the products from Uganda has also contributed to the high costs.

Traders say some of the fruits whose costs have gone up include water melon, bananas, paw paws and pineapples.

A bunch of bananas, which retailed at Sh120 three months ago has gone up by Sh30 while one piece of pineapple has gone up with Sh20 from the Sh100 to Sh120.

Traders at the border have also reported a Sh40 and Sh20 increase in water melon and pawpaw.

Oranges are the only fruits whose costs have remained the same due to the steady supply from the landlocked country.

Oranges imported from Uganda mainly come from Teso districts of Soroti, Kumi, Bukedea, Serere, Amuria and Katakwi.

Water melons, bananas and pawpaws are imported from Mbale, Sironko, Bududa and Budadiri.

The Kenyan shilling has been a free-fall against the Ugandan shilling, pushing up the cost of acquiring products from the East African Community member state.

In Malaba and Busia towns, the shilling is presently buying at Sh24 against the Ugandan shilling, the lowest rate ever reported while selling at Sh25.

Traders at the border have blamed the weak shilling on poor cross-border business.

In July, business people along the Kenya-Uganda border acknowledged they had been dealt a blow as the shilling continued to weaken against the Ugandan currency.

Martin Ojakaa, a trader said the weakening shilling is working to the advantage of Ugandan importers who buy merchandise in Kenya.

Kenyans buying from Uganda on the other hand spend more to buy goods from Uganda.

“Profits are small if one factors the cost of transport,” Harriet Awuor said.

Some fruits imported from Uganda are transported to Eldoret, Kisumu, Nakuru, Naivasha and Nairobi.

Egg prices have also remained high along the border.

An imported tray of eggs which used to retail at Sh270 or Sh290 now goes for a record Sh450.

Daniel Esiromo has urged the government to come up with policies that will strengthen the shilling to cut importation costs.

The Kenyan shilling has dropped by a unit against its Ugandan peer to sell at 24 units down from 25 units. It has been dropping since January when it traded at an average of 27 units.

In July, Central Bank reported that Kenyan households were staring at an even higher cost of living as the shilling continued on a free fall against the dollar, hitting imports and local companies’ operations.

The Kenyan shilling has been on a back foot since mid-2018 when it stood at 101.29 against the US dollar, even as CBK maintained that the local currency was stable.

With Kenya a net importer, a weak shilling means local traders and manufacturers are spending more to secure dollars to make payments in international trade, costs that are traditionally passed to consumers.