Christmas is around the corner ,many households Christmas without chapati is not Christmas,this nightmare may come true after the international price of wheat is pushing up local cost of flour pointing to a costlier commodity ahead of the festive season.
A tonne of wheat has gone up from Sh22,440 in August to current Sh27,540 on account of fewer supplies from Russia, which is placing a ban on export to protect its citizens against high prices.
Consumer prices of wheat flour have so far shot to a high of Sh122 for a two-kilo packet from Sh112 in August.
Russia is one of the leading exporters of wheat internationally and to Kenya.
“Prices of wheat have been going up since August and this has seen a 15 percent rise on cost of wheat that is landing in the country,” said Rajan Shah, chief executive of Capwell Industries.
The cost of clearing the produce, which includes transport from the port of Mombasa to Nairobi has pushed the price to Sh3,200 for a 90-kilo bag from a low of Sh2,600.
However, there has only been a marginal jump in consumer prices due to stiff competition brought by new players in the market.
“It is a cut-throat competition right now in the market and millers are very keen on how they increase prices as they fight to win customers,” said Mr Shah.