Reprieve for Kenyans as Bakers Slash Bread Prices

Bakers in the country have been forced to slash the prices of bread by Ksh5 following stiff competition by in-store bakeries within supermarkets and giant retailers.

In April 2021, Bakers increased the prices of bread by Ksh5 in an attempt to extend the burden of increased wheat prices to consumers.

This has, however, proved to be a loss as in-store bakeries have been selling their loaves for cheaper prices.

This has forced the Bakers to reduce their prices to keep up with the competition.

“It is evident that the public cannot pay a premium for the bread and this is what has forced bakers to cut their prices because of competition,” Bimal Shah, Managing Director for Broadway Group of Companies was quoted as saying.

It has since been noticed that 400-gram loaves of Superloaf and Festive breads are retailing at Ksh50 down from Ksh55, while 800 gram loaves are retailing at Ksh92 down from Ksh100.

Since the beginning of the year 2021, Bakers have reviewed the cost of bread three times in line with the shifting prices of wheat in the markets, however, supermarkets maintained their prices at Ksh50 per 400 grams, providing stiff competition to the companies.

This is the second time the prices of bread have been revised downwards.

The situation also strained businesses for small-scale retailers and shopkeepers who allege that customers opt for cheaper breads in supermarkets, leaving them with huge backlogs in stock.

The reduction comes as a relief to members of the public who continue to bear the burden of increased taxes across various services.