Contraband sugar: Economic terrorism?
Contraband Sugar Being destroyed at Mombasa The bulk of the contraband sugar being impounded in the country is smuggled through the Somalia border, we can report. According to a June 2017 FDD report, Kenya imports US$1.2 billion worth of Sugar from Somalia. The report cites an International Business Times report on the same dated June 4, 2014. That, from a country that does not own a single sugar mill! At the current world Market prices of $349 per ton, that is 3.45 million tons of sugar. However, at the current domestic price of KES 76,000 a ton, we import 1.58 million tons of sugar a year from Somalia! Local analysts doubt whether Kenya can absorb all this sugar. The demand for sugar in the country is about one million tons a year. The analysts however, say that this could be the total value of all contraband from Somalia including low-volume but high- value goods such as electronics, apparel and textiles. Sugar could form perhaps, 10 to 20 per cent of the contraba