Unga Group Holdings Ltd has hinted at abandoning the milling businesses over what it terms as declining revenues due to hard economic times in the country.
However, the colonial-era miller plans to venture shift into a general food company to make the business ready for future shocks.
Increased competition from new market entrants, the high cost of raw materials and decreased demand for products are some of the reasons behind the looming restructuring.
Read: No Subsidy For Unga, Ruto Tells Kenyans
“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,” said Unga limited.
On the side of animal products, Unga said there has been a surge in the importation of cheaper products making it impossible to operate competitively.
“In addition, we continue to be affected by cheap poultry imports from the region and fish from Asia, resulting in a condensed market for our animal nutrition products,”
Unga limited has been a household name in the milling business and manufactures some of the most consumed products in the Kenyan market. Some of the human food products milled at Unga include Jogoo and Hostess maize flour, EXE wheat flour and Famila porridge flour.
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