Unga Group has raised concerns over escalating pricing battles in Kenya’s wheat and maize flour market following the entry of three new millers.
The Group in its report said that the development has significantly disrupted competition in the staple-driven sector.
According to the company, the influx of new players has triggered aggressive brand rollouts and deep price cuts, particularly in the human nutrition segment, where millers are now fighting for market share in a highly price-sensitive environment.
“Consumers have become sophisticated bargain hunters chasing price first and then quality second,” the company noted, highlighting how the shift in buyer behavior is fueling the pricing pressures.
Three new millers trigger wheat and maize price wars
The surge in new millers entering Kenya is driven by sustained high demand for wheat and maize products, which continues to outpace domestic production.
With the country relying on imports for about 92% of its wheat needs, millers see room for growth attracting both local and international investors.
Among the prominent new entrants are Bakex Millers, strengthened by a partnership with global milling technology leader Bühler, and Joy Millers, known for its Raha Kavagara brand.
These companies have adopted modern milling technologies, enabling cost efficiencies that allow them to aggressively price their products to attract consumers.
In response to the heightened rivalry, Unga Group said it had chosen not to engage in “unsustainable price wars.”
Instead, the company is focusing on strategic sourcing, operational efficiencies, stronger trade partnerships, pack innovation, and carefully targeted promotions to protect market share without eroding profitability.
Also Read: Why Your Ugali Might Not Be as Nutritious- Report
The competitive heat has not been limited to human food products. Unga Group reports that the animal nutrition division has also seen disruption, with two multinational feed producers commencing local manufacturing.
These players, the company says, have slashed prices in an attempt to “buy their way into farmyards,” increasing pressure on established brands.
Unga Group financial results
The intensifying competition comes at a time when Unga Group has just posted a strong financial recovery.
For the year ended June 30, 2025, the company reported a net profit of Ksh222.06 million, marking a dramatic rebound from the Ksh669.58 million loss recorded the previous year. Revenue rose to Ksh26.13 billion, up from Ksh23.70 billion in 2024, reflecting improved sales volumes and market activity.
Operational performance also strengthened significantly, with the Group reporting an operating profit of Ksh699.58 million, reversing a Ksh71.98 million operating loss the year before.
Finance costs dropped to Ksh394.58 million, down from Ksh529.41 million in 2024, enabling the company to post a profit before tax of Ksh394.40 million, compared to a Ksh601.39 million loss previously.
Total assets as of June 30, 2025, rose to Ksh11.89 billion, while equity attributable to shareholders increased to Ksh3.49 billion, signaling improved financial stability.
Also Read: Prices of Select Food Commodities Expected to Increase
Unga Group Plc is one of East Africa’s oldest and most prominent food and nutrition companies having been established in 1908.
Headquartered in Nairobi, the Group manufactures and markets a wide portfolio of human nutrition, animal nutrition, and animal health products across Kenya and the broader region.
Its well-known consumer brands include Jogoo, EXE, Hostess, and Famila, with production facilities located in Nairobi, Eldoret, Nakuru, and Kampala.
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