Spenza Limited Mulls Expansion Bid, Decries High Cost of Production

By Steve UMIDHA

Grain milling company, Spenza Limited has called on the Kenyan government to weigh in on the high cost of doing business for manufactures, decrying the elevated cost of production caused by high taxes which it says has frustrated its returns.

Speaking today during the firm’s third year anniversary in Kerugoya, Kirinyaga County, its Commercial Director, Nahashon Ndegwa urged both the national and County governments to address the significant expenses associated with operating their businesses like high taxes, expensive permits, complex regulations, and rising operational costs which he said were a hindrance to their profitability and growth potential.

“The government should come in handy to consider lowering taxes at the individual and business levels, this will put money in pockets of the people.”

Despite the prevailing sector challenges, the Kirinyaga – based maize miller, is however, looking at strengthening its market share in the region’s flour and milling sector and has lined up a national expansion strategy to meet an increased demand for its products.

Spenza Limited has further announced plans to unveil a new line of business in wheat flour production.

Indeed, rising production costs directly reduce profitability, limiting a company’s ability to reinvest in growth, research and workforce expansion. Businesses like Spenza, operating in high-cost environments may find it challenging to compete with those in regions where operating expenses are lower, leading to a potential loss of market share.

High costs, like rising raw material prices, labor wages, energy bills, and taxes, generally hurt businesses by significantly impacting their profit margins, reducing cash flow, making it harder to compete, potentially forcing them pass of such additional costs to the final consumer extreme cases, even leading to business closures, especially for small businesses struggling to absorb these increased expenses.