Kenya: Sisal earnings increase to Sh1.2 billion on high prices

Sisal prices have increased to a record high in the three months to September, earning the country Sh1.2 billion in the review quarter when compared with the corresponding period last year.

Data by the Fibre Crops Directorate shows that the price of the commodity shot to a high of Sh182 per kilogramme between July and September compared to Sh165 in the same period last year.

The price increase was attributed to the current drought in most parts of the country, which saw a reduction in supply amid high demand in the international market.

The directorate said “In comparison to the previous year during the same period, generally prices have shot up in the current by an average of eight percent. This could be attributed to market forces of demand and supply during the period under review, as demand for fibre has been on the rise while supply remained low due to drought.”

A total of six sisal fibre grades were traded in the export market during the quarter under review. Grade UG was the most traded with a total of 3,966 tonnes being shipped out of the country, fetching a total of Sh751,166,490, representing a 57 percent market share of all exported fibre crops during the period under review, followed by SSUG at 32 percent.

During the period under review, the fibre was exported to a total of 27 export destinations with the leading destination being Nigeria with a total of 1,415.5 tonnes being shipped to this west African state, representing a 20 percent market share valued at Sh258,499,678.

The top five export destinations had a market share of 63 percent of the entire volume of sisal exports during the quarter under review. These markets were Nigeria, Saudi Arabia, China, Ghana, and Spain. The other 22 export destinations had a market share of 37 percent.