Materials & Supplies

Paint Makers to Hike Prices as Input Costs Surge

Paint prices to go up by 5-7.5% on high cost of raw materials.

Updated on

August 23, 2023

Paint prices in Kenya are expected to rise further over the next few weeks as manufacturers contend with the rising cost of raw materials and increased taxes.

According to the NSE-listed paint maker Crown Paints Kenya Plc, prices for premium paints will go up by 7.5% effective September 1 due to rising input costs.

A 15% rise in excise duty on imported paints, varnishes, and lacquers, coupled with high fuel prices and a weak shilling, have forced the company to adjust its pricelist.

“Despite our best efforts to absorb these additional costs, the sustained increase in raw material prices has made it necessary for us to adjust our product pricing,” said the company’s head of sales Mohammed Mateen in a notice to its customers.

The prices of its economy paint products will go up by 5%.

Neuce Kenya, a local paint maker, recently raised prices for its products, citing the high cost of raw materials and fuel, a weakening shilling, and a sluggish economy.

“Due to these reasons, we will not be able to sustain the current prices and we have no alternative but to further review the prices,” the company said.

Paint prices in Kenya, which have been rising since mid-2017, rose significantly in 2018 after the introduction of an 8% value-added tax and an Sh18 adulteration fee per litre of kerosene – a key raw material for paint and resin production.

The imposition of the levies saw the retail price of kerosene rise from Sh84.95 to Sh108.84, piling pressure on paint manufacturers, who were already reeling under high input costs.

Globally, raw materials such as monomers and titanium dioxide, which account for nearly 20% of the total purchase basket of a paint company, have been rising since early 2017 due to the shutdown of large plants in Europe and China over ecological concerns.

High paint prices are set to pile pressure on builders who are struggling with rising costs, considering that paint accounts for a significant portion of a project’s total budget.