Bread prices shoot up and Kenyans in the coming days will have to dig deeper into their pockets to purchase the commodity.
Bread is used in many households in Kenya for breakfast.
A report by Business Daily on Wednesday, January 20 indicated that almost all bread makers had increased their prices by Ksh5.
The increase means that a Ksh50 loaf of bread will now retail at Ksh55 while that going at Ksh70 will increase to Ksh75.
Why High Bread Prices
Bimal Shah, Managing Director of the Broadway Group of Companies, said that wheat costs had risen dramatically due to rising worldwide market prices, which account for 75 percent of Kenya’s raw materials.
“Since last year, we have witnessed a significant increase in the cost of wheat and this, coupled with the high cost of other ingredients that we use has necessitated the price increase on bread,” stated Shah.
A tonne of wheat flour is reported to have increased by 30% from Ksh25,300 to Ksh33,000.
After the Energy and Petroleum Regulatory Authority (EPRA) announced that the prices of Super Petrol, Diesel, and Kerosene will increase dramatically, it is thought that the hike in pricing was affected by the rise in oil prices.
Other items that have been affected by the economy include milk, which has increased from Ksh50 to Ksh55 per 500ml packet.
The increase in taxes, as well as the reintroduction of the 16 percent Value Added Tax, which had been decreased to 14 percent by President Uhuru Kenyatta after the Covid-19 outbreak hit the country, are claimed to have had an impact on the situation.