High costs cut firms’ earnings

A technician work on the cylinders at the BOC gases plant along Kitui road in Industrial area. FILE PHOTO | NMG

Manufacturing firms are paying the price for the inability to fully pass on the higher cost of imported inputs to the final customer, reporting lower profits despite a jump in sales turnover this year.

Bamburi Cement, Flame Tree Group, and Crown Paints all recorded lower profits in the six months ended June compared to the corresponding period last year, despite their sales going up as economic activity picks up post-Covid-19.

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