TUKO.co.ke journalist Wycliffe Musalia has over six years of experience in financial, business, technology, and climate reporting, which offers deep insights into Kenyan and global economic trends.

Kenyans could soon be forced to dig deeper into their pockets to buy essential food items if the government does not take the necessary actions.

Manufacturers of cereal and grain products have warned of the rising cost of production, which will be passed down to consumers.

In a joint meeting with Trade Cabinet Secretary (CS) Lee Kinyanjui on Monday, March 3, the Kenya Association of Manufacturers (KAM), the Cereal Millers Association, the United Grain Millers Association, and the Cereal Growers Association cited the major cause of high costs of production.

"The rising port charges are affecting our operations. Recently, Kenya Ports Authority (KPA) increased handling charges, raising the cost of importing raw materials. This rise in cost has increased production expenses, leading to higher consumer prices and reduced competitiveness," the association explained.

The millers also cited packaging costs and packaging bans on certain materials, which have disrupted production, increased production costs and forced millers to use costlier alternatives.

The millers called for an engagement with KPA and the Ministry of Transport to review port charges with a view to offer incentives for essential food commodities to lower production costs, thus ensuring affordability.

In an exclusive response to , KAM Chief Executive Officer (CEO) Tobias Alando said the move will make food prices affordable for all Kenyans.

"Any recommendations to lower our cost is supported and ultimately making food commodities affordable the mwananchi," said Alando.

CS Kinyanjui said the government would engage relevant stakeholders to undertake a system audit to identify inefficiencies, especially on predictability and certainty in the wheat value chain.

"This is in view of the government’s push for the Guaranteed Minimum Returns (GMR) seeking to support farmers who have long decried pricing and uptake uncertainty for their produce," said Kinayanjui.

This came as the country reported an increase in the Consumer Price Index (CPI) for February 2025.

Data from the Kenya National Bureau of Statistics (KNBS) indicates that inflation rose to 3.5% from 3.3% in January 2025.

KNBS reported an increase in the food and non-alcoholic beverages index by 6.4%, while the transport index rose by 0.7%, during the same period under review.

Food items like sugar, cooking oil, tomatoes, onions and unpacked cow milk registered price increases of 3.2%, 1.6%, 1.3%, 1% and 0.3%, respectively.

Source: TUKO.co.ke