Kenyans to Pay More for Eggs Over Shortage

By Jane Muia / Published June 28, 2022 | 2:36 pm

KEY POINTS

The price hike has been attributed to the commodity shortage as a result of the tax which forced many suppliers mainly from Uganda halt supplies to Kenya.

KEY TAKEAWAYS

Kenya depends on eggs from Uganda which sell at cheaper prices as compared to the local markets. Last month a crate of eggs that was selling at 450 shillings sank to 360 shillings, with the fall attributed to the increased supply amidst low purchasing power across the country.

The 25 percent excise duty imposed on eggs has seen the supply of the commodity dwindle amid rising demand. The price of a crate of eggs has jumped from 360 shillings two weeks ago to between 420 and 450 shillings.

The price hike has been attributed to the commodity shortage as a result of the tax which forced many suppliers mainly from Uganda halt supplies to Kenya. Uganda says the Kenyan government is now taxing its eggs at a rate of 72 shillings per tray.

Kenya depends on eggs from Uganda which sell at cheaper prices as compared to the local markets. Last month a crate of eggs that was selling at 450 shillings sank to 360 shillings, with the fall attributed to the increased supply amidst low purchasing power across the country.

Egg imports from Uganda have always been a problem to the local market because they retail at cheaper prices, thus suppressing the local commodity.

At the same time, the expensive layer mash has prompted farmers to buy fewer bags to lower the production cost. The average cost of a layer’s mash has climbed up rapidly to 4000 shillings per 70Kg down from 3,200 shillings in 2021.

The tax imposed on all the Uganda eggs entering Nairobi is likely to cause another trade battle between the two East African countries, after the latest battle which came as a result of the ban that Kenya imposed on Ugandan milk particularly the Lato brand.

Uganda says Kenya has awakened a levy the two countries had suspended last December following bilateral talks which saw Nairobi lift all the bans that had been inaugurated.

The high cost of feeds attributed to expensive maize and a shortage of key protein supplements such as sunflower cake and soy, which are hardly found locally also plays a role in the commodity shortage. Kenya mainly imports these products from Zambia which banned its exports last year over a domestic shortage.