Kenya: Wheat flour price set to rise on higher grain import cost

The price of wheat flour is expected to go up starting January following a rise in the cost of importing the grain into the country. Millers say that the landing price of wheat will increase to Sh56,000 for a tonne from Sh50,000 currently, exerting pressure on the flour and other products. The millers expect the consumer price of wheat flour to go up to Sh160 for a two-kilo packet from the current retail cost of Sh140 for the same quantity. The price of the grain in the world market has been on an upward trajectory since the beginning of the year on the back of a global shortage that has increased demand. “The prices of wheat flour will be going up as early as January because of an increase in import cost of the commodity,” said Bimal Shah, the managing director of the Broadway Group of Companies. Mr Shah said though the price of baking flour will be going up as well, that of bread may not at least in the next three to four months given that the cost was reviewed upwards by Sh5 ...