Kenyans To Continue Paying More For Bread Despite 30% Decline In Wheat Prices

Kenyans continue digging deeper into their pockets to pay for wheat and bread despite a 30 percent decline in the global price of wheat as manufacturers say a weakening shilling has made the imports more expensive.

The prices have been on an upward trend since 2022 and spiked in the past month after Russia, the world’s largest exporter, slapped export taxes on wheat and grain export quotas.

Covid-19 disruption in the shipping industry had 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.

The international price of wheat has dropped to $360 for a tonne of grain currently from a high of $520 in May last year, which was the highest cost to be recorded in the last 11 months.

Processors, however, argue that they are spending more to ship in wheat on the back of a depreciating shilling that has made imports expensive despite a decline in the price of the commodity.

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Supermarkets have kept the price of their in-house bread low when compared with the supplies that they are getting from processors.

The price of 400 grams of bread increased to an average of 60 shillings from 48.35 shillings, Kenya National Bureau of Statistics’ January inflation data shows. A two-kilogram packet of wheat flour is currently averaging 180 shillings on the shelves up from Sh135.

The 600 grams of bread also increases from 70 shillings to 90 shillings while the 800g of bread increases from 100 shillings to Ksh120 shillings. 1.5kg loaf will also surge in price by 30 shillings.

Kenya imports her wheat mainly from Russia, Argentina, the USA, and Ukraine, with clearing agents at Mombasa noting a slowdown in the commodity’s imports.

Related Content: Bread Manufacturers Accuse Supermarkets of Overpricing Bread by 2 Shillings