The prices of five major food items are set to rise this June due to supply disruptions caused by recent heavy rains, according to the Central Bank of Kenya's (CBK) Agriculture Survey among food chain stakeholders.

Rice prices are expected to remain elevated throughout the month as rice farms were severely affected by the floods, leading to the projected price hike. Currently, a 1kg packet of rice averages Ksh260.

The survey also revealed that the heavy rains adversely impacted many wheat farms, which will likely result in increased prices for white and brown bread. A 400-gram loaf of bread has been selling for Ksh65.

"Stakeholders expect some increase in rice prices reflecting the adverse impact of excess rainfall and flooding on domestic production. They also expect bread prices to increase due to the anticipated negative impact of flooding on domestic wheat production," the report stated.

Additionally, the prices of cooking oil, onions, and tomatoes are expected to stay high this month. Currently, 1 liter of cooking oil sells for Ksh330, and medium-sized onions and tomatoes are priced at Ksh15 each.

"Onion prices are expected to remain elevated. The price change observed in May 2024 was not significantly different from the April 2024 survey," CBK noted. "However, some farmers believe that the high prices of onions will incentivize increased production, potentially leading to a price decline."

Food Items Expected to Drop in Price

Conversely, some food items are projected to see price reductions in the coming month, including maize flour. The anticipated decrease is due to an adequate supply of maize grains in the market. Currently, a 2kg packet of maize flour retails between Ksh120 and Ksh190, depending on the brand.

Traditional vegetables and cabbages are also expected to have a stable supply next month, leading to lower prices. This stable supply is attributed to recent rains that enabled farmers to plant more vegetables.

"Respondents expect a decline in prices of some vegetables, milk, and sugar. However, expectations for price declines have moderated in the May 2024 survey compared to April," CBK noted.

"While respondents expect sugar prices to decline, they noted that the decline's magnitude would be much lower in June as sugar prices had already fallen from historically high levels and are likely to stabilize."