Potato disease fuels food price inflation in urban areas

Fast food vendors in Nairobi are feeling the pinch of high potato prices.

The operators are reporting declining profit margins since, they say, passing the increased costs to consumers is the last resort.

In Nairobi, the price of a 110 kilogram sack of red and white potatoes has increased to Sh3,300 from Sh1,500 while in Mombasa the prices have increased to Sh4,500 between March and August, according to data provided by the Ministry of Agriculture.

Price spike

The price spike has been caused by the outbreak of potato blight disease earlier in the year.

Crops that were planted in April and May after the disease attack are yet to relieve market pressure.

As a result fast-food restaurant owners have seen their profits dwindle as competition in the industry remains stiff and consumers are adopting healthier eating habits, reducing demand for fast foods.

“We are buying a sack at Sh3, 600. When the prices of potatoes go up, we cannot surcharge customer every now and then so we are suffering because of these changes” said Mr Henry Koigi, a supervisor at John and Joes along Harambee Avenue.

“We were buying already peeled potatoes at Sh35 per kilo but the price shot up to Sh40 - 45,” said Caroline, a manager at Kenchic along the same street. “We do not think we will increase chips prices because we need to keep our customers,” she added.

Heavy rains

In Nairobi, a plate of chips (french fries) is currently going for between Sh40 and Sh100.

In some lower end outlets, vendors have resorted to selling smaller portions while others are selling different portions for different prices.

“The price of potatoes over the last two or three months has been skyrocketing,” said a Tinto Restaurant official.

It is estimated that there are over 800 restaurants selling chips in Nairobi and over 40 local processors of crisps.

The heavy rains between November last year and June this year are to blame for the potato blight disease that is usually controlled by spraying pesticide.

The frequency of the rains made this difficult.

Last year during a shortage caused by drought, prices of a plate of chips had doubled to Sh70 in restaurants.