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Tissue Paper Prices Sharply Rises to An Average of Kshs.40 Per Roll

BY Lynnet Okumu · June 28, 2022 10:06 am

KEY POINTS

The product, which recently retailed at an average of 100 shillings, has left consumers between a thin and thick decision point. A month ago, a roll of tissue paper that went for about 25 shillings now sells at 40 at Naivas supermarket.

KEY TAKEAWAYS

Tissue paper manufacturers are typically required to use the waste paper available in the country and only import pulp when there is a shortage amidst growing demand.

Tissue paper prices have risen sharply in the wake of the runaway surge in prices of essential commodities to retail at an average of 160 shillings for a pack of four.

The product, which recently retailed at an average of 100 shillings, has left consumers between a thin and thick decision point.

A month ago, a roll of Toilex tissue paper that went for about 25 shillings now sells at 40 at Naivas supermarket.

The sharp increase in tissue prices has been linked to the importation of pulp, despite Kenya having enough waste paper at its disposal.

To stay ahead of the stiff competition, some players have been forced to bank on imported virgin pulp which is expensive for production.

Tissue paper manufacturers are typically required to use the waste paper available in the country and only import pulp when there is a shortage amidst growing demand.

The move by some players in the sector to import the commodity when there is no deficit in the country is spiking the product’s price.

This means that the cost of import duty levied on the raw material has been passed on to Kenyans.

Recently, the Consumers Federation of Kenya (COFEK) said that the recent price hike in essential commodities is unjustified and has written to the Competition Authority of Kenya (CAK) for action.

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“We want CAK to take prompt action against the manufacturers and sellers of basic items such as tissue paper. We’ve also asked the Retail Traders Association of Kenya to control their members,” the Secretary-General of COFEK, Stephen Mutoro, said.

However, the Kenya Association of Manufacturers (KAM) blames the rise on both domestic and external market forces.

“This is due to the cost of raw materials used in producing toilet rolls, which has gone up significantly. Kenya imports most of the raw materials from Egypt. The producing nation has since increased the per-unit cost by 50 percent, compared to the prices in early 2022,” Sated KAM.

The manufacturers also stated that the weakening of the Kenyan shilling against the dollar and the increasing fuel cost has affected the foreign exchange rate, thus impacting the ability to bargain in the foreign market.

“The cost of transporting raw materials and finished goods is also reliant on the cost of fuel. If the fuel cost goes up, again, the extra cost shall be transferred to the consumer,” the manufacturers warned.

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