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Bread Manufacturers Accuse Supermarkets of Overpricing Bread by 2 Shillings

BY Lynnet Okumu · June 9, 2022 02:06 pm

KEY POINTS

Currently, a 400g bread is selling at between 60-62 shillings, which is 2 shillings above the retail price according to the Bakers Association of Kenya.

KEY TAKEAWAYS

Kenyans have been complaining about the rising cost of foodstuff in the last two years, with the cost of fertilizer going up by more than 40 percent in the last 3 years. The country imports more than 50 percent of its fertilizer from Ukraine.

Bread manufacturers have accused supermarkets of overpricing their bread above recommended retail prices to promote their in-house bread which is cheaper.

Currently, a 400g bread is selling at between 60-62 shillings, which is 2 shillings above the retail price according to the Bakers Association of Kenya.

This is even though they are already giving supermarkets margins of up to 9 shillings for a loaf of bread, way above what manufacturers of other products offer.

“Retailers are raising the price of bread unnecessarily even with the good margins that we are giving them, creating unhealthy competition between our product and the ones that they bake in their outlets,” the bakers said.

In 2021, the bakers had to slice their prices by 5 percent against the backdrop of heavy competition from the in-house products, a situation that only led to more losses since wheat prices were up.

Related Content: Food Crisis Looms as Kenya Faces Wheat, Maize Shortage

The rising price of bread at the moment is occasioned by the high cost of wheat in the international market following the ongoing war between Russia and Ukraine, which has disrupted the supply of grain.

Across different supermarket shelves, wheat products such as Wheat flour now cost up to 180 shillings up from 120 shillings in 2021.

Chapatis usually cost around 20 shillings in roadside “vibandas”  or small food outlets. However, customers can hardly afford them anymore because they cost twice as much now. Life has become extremely expensive for an ordinary Kenyan.

The cost of other products such as muffins, noodles, pasta, biscuits, cakes, cookies, pastries, and cereal bars are have also shot up.

Kenya exports about 66 percent of wheat from the two countries. The current situation of the high cost of farming inputs has also reduced the local production of the commodity.

Kenyans have been complaining about the rising cost of foodstuff in the last two years, with the cost of fertilizer going up by more than 40 percent in the last 3 years. The country imports more than 50 percent of its fertilizer from Ukraine.

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