Households will grapple with the high cost of breakfast as bakers increase the price of bread by 16 percent, citing the high cost of raw materials.
Bakers have reviewed the price by Sh10 for a 400 grammes loaf of bread, to Sh70, coming just days after the cost of sugar went up significantly, subjecting households to expensive breakfast.
The price of 800 grammes loaf has moved from Sh130 to Sh140 with the 600gm jumping from Sh90 to Sh100 in the latest review.
The processors argue 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 seen by the Business Daily.
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 comes at a time when International prices of wheat have dropped of late but processors argue that a weakening shilling has made it difficult for the change to reflect on the price of the commodity locally.
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.
Kenyans got a reprieve last week from higher wheat prices after Russia agreed to renew the grain initiative deal that allows the produce from Ukraine to pass along the Black Sea to the global market.
Manufacturers welcomed the UN-brokered deal, which saw the agreement that was due to expire on May 18 renewed for a further period of two months.
Wheat processors had argued that should the deal not be renewed, then the cost of flour and bread would remain at the current high levels or even go up as Kenya is a key market for Ukrainian wheat.
Bimal Shah, the chief executive officer of the Broadway group of companies, says they are 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.
