Wheat Shortage Causes Rise in Flour and Bread Prices

Bread and wheat flour prices continue to go up amid disruption on imports and rising international prices of the cereal.

The prices have been on the rise since the last quarter of 2020 and spiked in the past month after Russia imposed taxes on wheat and grain exports quotas.

The Covid-19 disruption on the shipping industry has further affected import trends into the country as importers struggle to secure vessels for shipment.

Agriculture CS Peter Munya on Wednesday admitted to challenges in the international market which he said the government has no control over. This signaling continued high wheat prices in the short-term as the country remains heavily dependent on imports.

“We grow about 20% of our wheat demand. More than 80% is imported and there have been challenges in that sector because of Covid-19 and other developments out there,” said Munya.

Millers have called on the government to abolish the duty on wheat in order to cushion customers against the rising prices, but the ministry has said it has little influence over the price hike.

The price of 400 grams of bread increased to an average of Sh51.52 in January from Sh48.35 in December, according to Kenya National Bureau of Statistics’ January inflation data. A 2kg packet of wheat is currently averaging Sh145 up from Sh135 in December.