Lobby says low egg prices due to a local glut

A poultry lobby says the low price of eggs is a result of a domestic market glut and not because of imports from Uganda and South Africa as reported by traders.

Chairperson of the Kenya Poultry Farmers Association Wairimu Kariuki Monday said there was no proof of imported eggs flooding the market.

The price of a tray has been on decline since last month to currently retail at Sh300, from a high of Sh330.

“You cannot say the prices have been driven down by flooding of eggs in the market, which people are alleging is coming in from Uganda and South Africa, without giving evidence,” said Ms Kariuki.

“The price change has resulted from a glut as local production is currently up, which is normally the trend in January,” she added.

However, consumers are yet to benefit from the decline as major retail shops are still selling an egg as at high as Sh12.

Ministry of Agriculture said it was looking into the allegations that eggs are being smuggled into the country, hence affecting the local price.

Chief Administrative Officer Andrew Tuimur, however, pointed out that Kenya imports eggs from Uganda and South Africa to bridge the local deficit.

“As a matter of fact, we do not produce enough eggs and we rely on imports to meet our needs,” he said, pointing out that these imports come through official channels.

Eggs from Uganda are arguably cheaper due to lower cost of cereals and less tax.

The cost of production in Kenya went up following the imposition of 16 percent value added tax on poultry feeds in 2013. According to traders, a tray of egg from Uganda is retailing at Sh240 making it hard for them to compete.

Ms Kariuki though said farmers can still break even with the price of Sh300 a tray given the cost of production currently stands at Sh262.

An acute shortage of eggs in western Kenya forced traders to import from Uganda in 2015 to meet the high demand.