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 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. The new price will now be between 55 shillings and 60 shillings.
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.
The cost fluctuation for a loaf of bread has always been in response to an increase in other items such as oil and sugar. Prices have been on an upward trend since the last quarter of 2020 and spiked early this after Russia, the world’s largest exporter, slapped export taxes on wheat and grain export quotas.
And now that Russia banned the export of wheat to Kenya last week, wheat prices are likely to start going up more between December and January 2022.
In July 2021, Wheat prices rose by 450 shillings on account of the cost of production and importation. The farmers have been earning a minimum of Sh3,700 per 90kg bag compared to last year’s price of Sh3,250.
Covid-19 disruption on the shipping industry has further hurt import trends into the country as importers struggle to secure vessels for shipment, with successful cargo landing at the Port of Mombasa on higher import bills.
A 2kg Packet of the common Ajab wheat flour now goes for 145 shillings in most online selling platforms such as Jumia, Copia, and Kilimall and sells at 133 shillings in Naivas outlets.
The price of various commodities 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.