KAMPALA
Commercial bread manufacturers across Uganda have announced a nationwide increase in factory and retail bread prices, effective November 2, 2026, citing rising wheat flour costs, elevated diesel prices and significant foreign exchange volatility.
Operating under the Uganda Bakers Association, industry leaders convened a joint press conference at Ntake Bakery in Nalukolongo, Kampala, to announce the new pricing structure. They warned that escalating operational costs had squeezed factory profit margins to unsustainable levels.
Under the revised pricing structure, the factory-gate price of a 1-kilogram loaf of bread will increase from Shs5,000 to Shs5,500, with consumers expected to pay between Shs6,000 and Shs6,500 at retail shops.
Similarly, the factory price of a half-kilogram loaf will rise from Shs2,500 to Shs3,000, while retail prices are expected to range between Shs3,300 and Shs3,500.
Manufacturers Grapple with Rising Production Costs
Addressing the press conference, Canon Dr Gaster Lule Ntake, Chairperson of the Uganda Bakers Association, said manufacturers had spent several months absorbing rising operational costs to shield low-income households from additional financial pressure before being forced to revise their prices.
“We have absorbed these surging production costs for as long as possible to cushion ordinary Ugandans from additional financial strain,” Dr Ntake said.
“However, despite our efforts to maintain stable prices, the pressure on production margins eventually became unsustainable, forcing a modest upward adjustment across standard loaf sizes.”
Dr Ntake emphasised that commercial baking relies heavily on diesel fuel to power high-capacity industrial ovens and operate distribution fleets supplying products across the country.
He cautioned retailers against exploiting the price adjustments by imposing excessive mark-ups on consumers.
“We urge all retailers and shop owners across the country not to exploit these price changes by imposing excessive mark-ups on everyday consumers,” he said.
“The baking sector relies heavily on diesel fuel to power industrial machinery and transport finished products nationwide, making increases in fuel prices particularly damaging to our supply chains.”
Import Dependence and Exchange Rate Volatility
Adding to the industry's concerns, Isaac Njoroge of Jonisa Bakers Limited highlighted the sector's heavy dependence on imported raw materials, noting that nearly 80 per cent of the essential inputs used in commercial bread production in Uganda are sourced from abroad.
With the Uganda shilling trading at approximately Shs4,350 against the US dollar and long-term government borrowing costs rising to 18.48 per cent on sovereign bonds, importing wheat flour, yeast and specialised baking additives has become significantly more expensive.
“Roughly 80 per cent of all raw materials used in commercial bread production in Uganda are imported, leaving local bakers highly exposed to international supply chain disruptions and foreign exchange volatility,” Njoroge explained.
“The strength of the US dollar against the local currency has drastically increased the cost of importing essential inputs such as wheat flour and baking additives.”
Calls for Tax Relief and Policy Interventions
The price adjustment has renewed debate over food affordability, with Members of Parliament and civil society groups urging the Government to consider targeted tax relief on petroleum products and agricultural inputs to help stabilise consumer prices.
The Uganda Bakers Association has reaffirmed its commitment to reviewing wholesale and retail prices downwards once global wheat markets stabilise, exchange rates improve and domestic fuel prices ease.
In the meantime, association executives continue to petition relevant government ministries for policy interventions to protect local manufacturing capacity while safeguarding household purchasing power.
