Kenyans will benefit from lower wheat flour prices due to a bumper harvest in Russia and enhanced supplies to the world market.
The harvest in Russia, which marks a second consecutive bumper crop, has pushed Moscow to the top slot as the number one exporter of grain globally, coming as a reprieve to many households across the world.
The prices have moved down to almost half of what prevailed when Russia first invaded Ukraine last year in March.
Globally, the price of wheat has dropped to $300 a tonne from a high of $580 when the war first broke, which disrupted logistics along the Black Sea, a major grain corridor to the world.
Russia and Ukraine are Kenya’s main sources of wheat, accounting for more than half of the total grain that is shipped in the country.
Kenya imports up to 75 percent of the total wheat demand in the country as the local crop is not sufficient to meet the market needs.
“There are not a lot of competitors for Russian wheat,” Hélène Duflot, a grain-market analyst at Strategie Grains is quoted by Bloomberg News “Russia is the price maker at the moment.”
Russia has been bombarding ports in Ukraine and its withdrawal from the UN-backed Grain Initiative deal means Moscow will remain the largest exporter of grain in the world this year.
Russia agreed to renew the grain initiative deal in May allowing the produce from Ukraine to pass along the Black Sea, however, Kremlin says that it will not renew the deal again, which was first signed in July last year.
Wheat processors had argued that should the deal not be renewed, then the cost of flour and bread would increase further as Ukraine is a key supplier of wheat to Kenya.
Bakers reviewed the price of bread by Sh10 for a 400 grammes loaf of bread, to Sh70, the price of 800 grammes moved from Sh130 to Sh140 with the 600gm jumping from Sh90 to Sh100 in May this year.