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Bread Price War: Bakers Slash Prices Amid Competition

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Nyakundi Report

Newsroom 2 min read

This archive report was first published on 24 July 2021.

On July 24, 2021, the bread market in Kenya witnessed a significant shift as bakers responded to the stiff competition posed by in-store bakeries in supermarkets.

According to reports, bakers had previously raised their prices in an attempt to pass on the additional cost of wheat to consumers. However, with the rise of in-store bakeries, consumers began to opt for the cheaper products, leading to a decline in sales for the bakers.

Spooked by the consumer shift, bakers have now lowered their prices to keep up with the competition. The price of a 400g loaf of Superloaf and Festive has been reduced to Sh50 from Sh55, while the 800-gramme Festive brand is now selling at Sh92 from Sh100.

However, concerns have been raised over the quality of bread from new entrants Kingsmill and Selecta, which are selling larger loaves at the same price as smaller ones. The companies have been accused of using harmful chemicals or ingredients to increase the size of their bread, which could be detrimental to the health of consumers.

‘Thank you for being a keen observer. @KEBS_ke is mainly concerned with the quality of the bread as our mandate. Matters weight is the mandate of the weights and measures department,” said a spokesperson for KEBS.

Consumers have expressed mixed reactions to the development, with some questioning the ingredients used by Kingsmill and Selecta. The Competition Authority of Kenya and the Consumers Federation of Kenya have been urged to come up with regulations to control market malice and level the playing field for fair play.

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