Higher wheat costs translate to increased bread prices

Bakers have resorted to passing the additional cost in price of wheat to consumers, leading to an increase in cost of bread by between Sh5 and Sh8. 

In January, the price of bread had increased by the same margin. However, bakers retreat on the pricing after getting stiff competition from supermarkets, which maintained a lower cost on their in-house brands.

A 400 gramme loaf of Superloaf bread is now retailing at Sh55 from Sh50 previously with 800 grammes of Festive brand selling at Sh100 from Sh92.

James Ng’ang’a, a trader in Nairobi said, “We are getting bread at Sh45 from wholesalers and selling the same at Sh55 following the recent adjustments by bakers.”

Households are highly likely to feel the pressure given that are grappling with increased prices of other basic commodities such as milk. 

According to the managing director of Broadway Group of Companies, Mr Bimal Shah, the increase was inevitable as Kenya relies on global market for up to75 per cent of her total requirement.

Currently, a tonne of wheat has spiked to Sh34,240 from Sh25,300 last year. 

Shah said, “Since last year, we have witnessed a significant increase in cost of wheat and this, coupled with the high cost of other ingredients has necessitated the price increase on bread.”