Due to supply disruptions caused by the recent heavy rains, the prices of five major food items are expected to rise in June.
Rice is one of the foods that will stay elevated for the month, according to the details of the Agriculture Survey that the Central Bank of Kenya conducted among the participants in the food chain.
The explanation for the price increase was given as the negative impact of the floods on rice farms.
A 1 kg packet of rice currently costs, on average, Ksh260 among Kenyan consumers.
However, according to those involved in the food industry, the rains had an impact on numerous wheat farms, which is why white and brown bread production was expected to rise.
A 400-gram bread bag costs Ksh65 at retail.
“They (stakeholders) expect some increase in rice prices reflecting the adverse impact of excess rainfall/flooding on domestic production. They also expected bread prices to increase on account of the expected adverse impact of flooding on domestic wheat production,” read the report in part.
Equally, cooking oil, onion and tomato prices are expected to remain elevated for the month.
“Prices of onions were expected to remain elevated. The observed price change in May 2024 was not significantly different from what was observed in the April 2024 survey,” CBK noted in its report.
“However, some farmers were of the view that the prevailing high prices of onions would incentivise farmers to produce more onions thereby leading to a price decline.”
Currently, 1 litre of cooking oil is sold at Ksh330 while medium-sized onions and tomatoes go for Ksh15.
Conversely, some food items are expected to drop in the coming month and that includes maize flour.
According to the stakeholders, the reduction of maize flour is anticipated because of the adequate supply of maize grains in the market.
Currently, a 2kg packet of maize retails between Ksh120 and Ksh190 depending on the brand.
Traditional vegetables and cabbages have been projected for stable supply during the next month, hence projections for the reduction in prices.
The stable supply has been explained by the recent rains that enabled some farmers to plant the vegetables.
“Respondents expected a decline in prices of some vegetables, milk and sugar. However, expectations for price declines appear to have moderated in the May 2024 survey compared to April,”CBK noted
“Whereas respondents expected the sugar prices to decline, they noted that the magnitude of decline would be much lower in June as sugar prices had already declined from historically high levels and were likely to stabilise.”
