Ruto's 4-Point Agenda in China, Kenyans to Spend More on 4 Food Items

Hello Moneymakers, Washington here. In today’s newsletter, we explain why you will be spending more on some food items for the next month. Additionally, will Ruto be taking up more loans in China? Here is what the State House has to say about the trip.

In Summary

• Kenyans will spend more on 4 food items, including cooking oil and sugar, next month.
• President Ruto to push for infrastructure investment during his five-day visit to China.
• Treasury CS John Mbadi responds to concerns over Kenya’s possibility of default amid plans to borrow more from China.
• EPRA pushed for strict insurance rules for LPG dealers to protect consumers during accidents.

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Food Prices to Increase 

A survey by the Central Bank of Kenya has shown that prices of 4 food items will increase in April. As detailed in the Agriculture Sector Survey conducted in March, Kenyans will witness an increase in cooking oil, sugar, maize, and tomato prices.

‍Why This Matters: With an increase in food prices, Kenyans will be forced to spend more than they had budgeted for, further putting pressure on their finances.

Regarding sugar and cooking oil prices, CBK attributed the projected increase in prices to global factors. As revealed in the report, global prices of the two items have been increasing; therefore, an increase in the global market will reflect in an increase in retail prices here in Kenya.

Currently, most 1-litre cooking oil brands are priced between Ksh300 to Ksh350. On the other hand, a 2kg packet of sugar retails at Ksh300 in most supermarkets.

On the other hand, maize prices are set to increase because of seasonality. 

"Respondents expect the prices of maize products and related items to be relatively higher in April 2025 relative to March 2025, mainly reflecting seasonal patterns."

"Tomato prices are expected to increase mainly reflecting an expected decline in supply as a result of the long rains," read the report in part.

Conversely, because of the rains, prices of some food items will drop within the next 30 days. These food items include traditional vegetables, kale and cabbage.

Also Read: 8 Grocery Shopping Tips That Will Save You Money

‍Details of Ruto’s Trip to China

President William Ruto departed for China on Monday night and is set to engage with various Chinese government officials and private companies till Saturday, April 26.

Among the key agendas are investment opportunities in Kenya, trade, digital innovation, and industrial growth.

‍Why It Matters: China is a major bilateral partner for Kenya and has funded several infrastructure projects, such as the SGR and the Nairobi Expressway. Notably, Kenya is still eyeing more bilateral engagement with China amid plans for major infrastructure projects such as the Nairobi-Nakuru Highway and the SGR extension from Naivasha to Kisumu.

Notably, in a statement by the State House, infrastructure investment will be among the agenda’s for the five-day state visit amid the noise over increased borrowing by the government.

"He will also officiate the Kenya-China Business Forum, bringing together over 100 companies from both countries to explore new opportunities in trade, investment, digital innovation, and industrial growth," read the statement in part.

"As part of efforts to boost Kenya’s agricultural exports, he will inaugurate the Kenya Tea Holding Centre in Fujian Province. Situated in one of China’s key tea regions, the Centre will enhance the visibility and market access of Kenyan tea, support smallholder farmers, and strengthen Kenya’s trade footprint in Asia."

Also Read: SGR Extension to Kisumu Tops President Ruto’s Agenda in China

‍Govt Responds to Concerns on Loan Defaults 

Treasury Cabinet Secretary John Mbadi has allayed fears over the possibility of the country failing to meet its loan obligations.

According to a report by the People Daily, Mbadi expressed that Kenya did not have a problem of debt sustainability. However, he noted that there were issues of liquidity.

He attributed the current financial pressures that the country is facing to the loans that are maturing in 2032. As of today, Kenya’s outstanding loan stands at slightly over Ksh11 trillion.

‍EPRA Mulls New Rules for Cooking Gas Dealers

As reported by the Business Daily, EPRA is seeking to have LPG dealers have mandatory insurance covers that safeguard and covers Kenyans, homes, and businesses from losses that occur during accidents such as explosions.

EPRA explains that the move will ensure that Kenyans are not left to face financial burden when accidents occur. Most accidents have been attributed to defective cooking gas cylinders and accessories.

In enforcing the new regulations, EPRA will enforce a fine of Ksh10 per cylinder for the number of cylinders a company declares to the authority.

On the other hand, the Authority mandated that investors interested in joining the LPG sector must have an inventory of 30,000 gas cylinders, an increase from the current requirement of 5,000.