Gloomy festive season ahead as prices of basic items keep rising
Putting breakfast on the table promises to be a costlier affair following an increase in the price of bread, even as Kenyans usher in the Christmas month.
The increase in price by manufacturers follows the rising cost of wheat, the main raw material in the production of the breakfast staple.
According to a new price list unveiled by DPL Festive Ltd, the maker of Festive bread, that took effect from December 1, the recommended consumer retail price for a 400-gramme loaf has moved from Sh50 to Sh55.
The same quantity of Festive premium seeded bread is now Sh105 from Sh95.
The 600-gramme bread was adjusted upwards from Sh74 to Sh80, 800 grammes from Sh100 to Sh110, while the 1.5-kilogramme family bread now retails at Sh200 from the previous Sh185.
The price adjustments will see wholesalers make between Sh5 to Sh15 per loaf as manufacturers and bakers pass the additional costs on to consumers.
Soaring costs
The move presents a gloomy holiday for Kenyans who are already feel the squeeze amid soaring costs of energy, sugar and cooking oil — among other basic items.
Broadway Group of Companies Managing Director Bimal Shah said the company enforced the price change mid last month even as a spot -check by the Nation established that other brands have already implemented the new prices.
While justifying the price increase to the Nation on Wednesday, Mr Shah said the cost of wheat has been going up since early this year, making it difficult for manufacturers to keep their prices constant.
Mr Shah had earlier reported that the price of wheat significantly went up globally. Kenya imports up to 75 per cent of its annual wheat requirements.
The price of a tonne of wheat at the international market has increased by 44 per cent from January, sparking a rally both on bakers and standard flour millers. A tonne of wheat at the global market has gone up to Sh47,520 from Sh33,000 in January, he noted.
“We have witnessed a significant increase in cost of wheat and this, coupled with the high cost of other ingredients that we use, has necessitated the price increase on bread,” Mr Shah said. BY DAILY NATION
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