Unga Group Holdings Ltd is mulling over abandoning grain milling after 110 years in production, The East African reported.
The company will go for general food manufacturing amid rising competition in the milling industry leading to fall of revenues.
The firm manufactures Jogoo, Hostess and Exe flour.
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According to group’s managing director Joseph Choge about 50 new millers joined the market in the last two years heightening the level of competition.
The same has also been attributed to the falling demand of its products and the high cost of raw materials.
“In addition, we continue to be affected by cheap poultry imports from the region and fish from Asia, resulting in condensed market for our animal nutrition products,” the company said.
A development team has since been set up to work on a new product as the firm’s transition from a milling outfit to a general food outfit kicks off.
“Looking ahead, we have observed changing consumer purchasing habits, particularly among younger consumers who prefer convenient, nutritious foods that are easy to prepare while also being health conscious,” Choge said.
In other news, United Millers failed to stop a KSh 527 million claim in taxes by the Kenya Revenue Authority (KRA).
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The company had moved to the High Court seeking to challenge KRA after demanding the aforementioned amount of money in taxes.
The tax in dispute had been reduced from KSh 792 million to KSh 527 million.
The food processor also wanted the court to stop KRA from demanding, issuing agency notices, or in any other way howsoever from effecting the collection of the said taxes or any other sum arising from the tax assessment subject of the court case.
The demands by KRA are contained in a demand notice issued on August 6, 2021.
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