In Summary
  • The cost of a two-kilo packet has dropped from Sh130 in December to Sh115 across major brands.
  • The Cereal Millers Association (CMA) has attributed the decline to increase in volume of wheat in the country, mainly due to imports.
  • Kenya does not produce sufficient wheat locally and relies on imports to meet the annual demand.

Wheat flour prices have dropped significantly as stiff competition among millers and low demand from customers force the processors to review the cost.

The price of a two-kilo packet has on average dropped from Sh130 in December to Sh115 across the major brands in Nairobi retail shops. The drop in flour prices — both for maize and wheat — is likely to positively impact on inflation.

The Cereal Millers Association (CMA) has also attributed the decline to increase in volume of wheat in the country, mainly due to imports.

“There has been aggressive competition for sales volumes in a soft market,” said Nick Hutchinson, CMA chairperson and Unga Group chief executive.

Mr Hutchinson said since the demand in the market is poor, millers are trying to trigger demand through pricing.

A two-kilo Exe all-purpose flour is now retailing at Sh114, Pembe Sh116, Kifaru Sh117, Exe Chapati Sh116 and Golden for Sh112. All the brands were retailing at above Sh130 in December last year.

In December, millers reduced the price of wheat flour by Sh8 following an increase in supply of wheat through the Port of Mombasa, after the delays occasioned by logistical challenges at the facility ended.

The move saw the recommended price for a two-kilo packet fixed at Sh129, down from Sh137 previously.

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