2021 Christmas Likely to Be the Most Expensive Ever for Kenyans

The 2021 festive season could well be the most expensive Christmas for Kenyans due to the increase in prices of essential food products.

In the latest review, manufacturers of sugar, cooking oil, soda, bread, and milk have begun a fresh round of price increases for the commodities.

Breakfast will be the most hit and might remain an optional meal for those who cannot afford it.

Beginning the week – November 15 – a 400g loaf of bread will cost 5 shillings more. This has been attributed to the rising cost of wheat which has increased 44 percent since January 2021 on the international market.

A ton of wheat at the global market has increased from 33,000 shillings recorded in January to 47,520 shillings. This is the same market that Kenya sources up to 75 percent of its wheat.

This is the third time since January 2021 that bakers have adjusted the price of bread. The price increase has always been reversed following consumer preference for supermarkets’ in-house brands whose prices remained unchanged.

Nonetheless, the cost fluctuation for a loaf of bread has always been in response to an increase in other items such as oil and sugar.

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Also, the cost of cooking oil, sugar, soda, to name a few, have increased adding to the recent hike in the cost of Liquefied Petroleum Gas (LPG).

The wholesale price of sugar increased a fortnight ago to 6,200 shillings from 5,200 shillings previously.

From an average of 130 shillings registered a month ago, a kilo of sugar will now cost 10 shillings more, that is, a kilogram will go for 140 shillings.

Soda prices have also been adjusted with 200ml increasing from 20 shillings to 25 shillings. The 300ml bottle has also increased by 5 shillings from the usual 30 shillings. This represents a 16.67 percent hike!

On average, the cost of a liter of cooking oil has risen from 250 recorded in October to 300 shillings.

These price fluctuations also add to the burden of refilling a 13kg cooking gas cylinder which costs 411.66 shillings more to average at 2,445 shillings. This was as a result of the 16 percent value-added tax on the commodity in July.

At this rate, Kenyans should brace themselves for tough times ahead given that even in small retail kiosks, a 500ml packet of milk has also gone up by 5 shillings from the usual 50 shillings.

Milk processors cite the supply shortage of the commodity in the market as the most common reason. However, the same processors had initially attributed the rise to high farm gate payments to farmers.

Milk sold to Kenya New Cooperative Creameries and Brookside gives farmers up to 40 shillings for a liter based on 2020’s review.

The price of this commodity is set to continue rising in the coming weeks due to the drought expected across various regions in the country.

The Kenya Meteorological Department says that the short rains from October to December will not be sufficient.