KENYA – Breakfast will get costly as bread makers increase the price of bread by 16 percent, with now the 400 grams loaf expected to retail at KES 70 from KES 60, Capital News has reported.
The exorbitant bread prices add more pain to Kenyans who are already battling the high cost of food products amid a shrinking economy.
According to Capital Business, the new prices have taken effect at various retail stores, processors arguing that the cost of sugar and fuel among other things have gone up significantly, resulting in adjustments in prices.
“As a result of increased prices of raw materials in the baking industry, the cost of production has become untenable and hence we have increased our prices effective from May 22, 2023,” read a notice by bakers.
Households will grapple with paying more for the commodity, with the price of 800 grams loaf will now cost KES 140 from KES130 while the 600gm jumping from KES90 to KES100.
This is the first time in the history of the baking industry that the consumer price of the commodity has jumped by a huge margin.
The increment cuts short Kenya’s hope for cheaper wheat products after Russia agreed to renew the grain initiative deal that allows the produce from Ukraine to pass along the Black Sea- a major corridor that supplies the commodity to the world market.
However, processors argue that a weakening shilling has made it difficult for the change to reflect on the price of the commodity locally despite that the country will benefit from imports from Ukraine.
According to them, 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.
The international price of wheat has dropped to $310 for a tonne currently from a high of $520 in May last year, which was the highest cost to be recorded in recent years.
Speaking to Business Daily, Bimal Shah, the chief executive officer of the Broadway group of companies, said that the group is yet to review their prices but confirmed that they will be following what other bakers have done.
“The cost of production has significantly gone up. A good example is the price of sugar, we use a lot of sugar in making bread and this has had a direct impact,” said Mr Shah.