The Kenkey Index Review of 2023: Calm after Storm 

#Price #Weight #Shrinkflation #TurningTheCorner

What do all the macroeconomic numbers and jargon have to do with the price of kenkey? Here it is: From a turbulent beginning that saw two price increases within six months, the kenkey market had stabilized by the end of 2023. Four-cedi kenkey dominates, five-cedi kenkey is here to stay, and two-cedi kenkey is finished.

Kenkey began 2023 in the middle of a steep price increase. The Kenkey Index had first recorded four-cedi kenkey in November 2022. As of January 2023, roughly 10 percent of the kenkey for sale on the market was at for GH¢4, and the average selling price was GH¢2.83. But by April, 41 percent of the kenkey on offer was at GH¢4, and the average selling price was GH¢3.44.

April was also the month when the five-cedi kenkey made its entry. By November, one third of the kenkey on offer on the streets of Accra was for GH¢5—in the same month that the two-cedi kenkey disappeared. (Teshie was the last stop for the two-cedi kenkey)

While the selling price affects affordability, the value for money lies in the price of kenkey at a given weight. On that measure, kenkey started the year at 124 grams per Ghana cedi, a 20.5 percent drop over the preceding three months, as consumers experienced a sharp drop in their kenkey well-being through shrinkflation.

The value of kenkey continued to drop another 17 percent over the first half of the year, ending at 102 grams per Ghana cedi in July.

The market started stabilizing in July, due in part to an increased supply of maize and an increased number of seasonal kenkey sellers, according to one experienced seller. The selling price and value for money have remained stable since then, even turning around slightly.

Year-on-year, the average selling price of kenkey on the market has gone from GH¢2.75 to GH¢3.87, a 40.7 percent increase. The value, as measured by the weight per Ghana cedi, is down 17 percent.

But what do all these percentages and averages mean for the average Ghanaian?

• The most common selling price of kenkey on the market is now GH¢4.
• Kenkey equivalent to the weight of a sachet of water costs an average of GH¢56. (23.8 percent more than a year ago)
• Perhaps, most important, the Kenkey Index found the best value for kenkey in December at:
  1. Weija
  2. Teshie
  3. Korle Gonno
  4. Nungua
  5. Mamprobi

(Keep in mind GPRTU is increasing prices and advise yourself before traveling to buy kenkey).

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By the numbers

1. The average selling price of a ball of kenkey at the end of 2023 was GH¢87 cedis, up 40.7% from GH¢2.75 in December 2022.

2. The most common price on the market was 4 cedis, up from 3 cedis a year before.

3. How much kenkey does one get for each Ghana cedi? On average, 4 grams. In December 2022, that was 136.4 grams of kenkey.  So, kenkey shrunk by 16.9 percent over the year.

4. Imagine a sachet of water were a ball of kenkey. Kenkey of that weight would cost, on average, GH¢56 – up from GH¢3.69 at the beginning of the year. In effect, kenkey inflation was 23.8% year-on-year.

5. The five-cedi kenkey entered the market in April while the two-cedi kenkey disappeared in November. Kenkey prices now range from GH¢3 to GH¢5.

6. As to be expected, the higher the price, the heavier the kenkey.

7. But if one’s goal was to get the most kenkey for one’s money, the best bet currently is the three-cedi

8. But not all kenkey are created equal. The most affordable kenkey was on the coast.

9. But the absolute heaviest ball of kenkey was in Ablekuma: 739 grams, more than a big green bottle of beer in weight.

10. The kenkey league table

The Kenkey Index is compiled with kenkey from 30 to 40 spots (depending on availability in each collection period) around the Accra Metropolitan Area. Samples are collected within one week in each calendar month, typically starting on the 15^th day.

 

Project lead: Kobina Aidoo

Data analyst/research assistant: Michael Armah

Social media support: Benjamin Eduafo Arthur Jr. and Felicia Efua Arthur

Data collection/transportation support: Isaac Kow Baah and Richard Quarcoo

 

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