Businesses decry reduced purchasing power in Nyanza

Cereal trader goes about her duty at Jubilee market in Kisumu (Photo: Denish Ochieng/ Standard)

KISUMU, KENYA: low purchasing power has hit mall scale businesses in Kisumu with goods previously sold in a week now taking up to a month to clear stock.

Investigations by the Standard established traders selling various consumable goods in Jubilee and Kibuye markets are recording reduced profits each day, week and month.

The trend which has been witnessed in the last six successive months has now even led to the closure of some of the food retail businesses due to lack of ready sales market.

A spot check and vox pop interviews with some of the affected traders in the markets revealed many who are now worried by the declining purchasing power.

Judith Akinyi who operates large stock of peanuts, groundnuts and butter products says the demand by the consumers has significantly gone down in the last four months.

''We used to sell the consumables like hot cake in a week. But now our stock can take up to a month and beyond. This is very abnormal sales,'' Akinyi explained.

The price of groundnuts per two kilograms tin had also significantly rose thus adding to the misery of low purchase. ''We now sell a 2-kilogram tin at Sh400,'' She explains.

The prices have doubled owing to the volatile retail market. She also says they have to pay revenue daily and store charges which further eat into their profit margins.

But she is not alone. Many other traders have been equally affected in the grocery markets. Winnie Atieno, a grocery dealer decried the same frustrations.

Currently, there is a huge concern over a sluggish increase of consumer spending power, especially among low-income people, within the town and its suburbs.

Atieno recalled that she declined a loan offer from a micro-finance institution to expand her stock because the business is not doing well at the moment.

''I can only accept the loan offer if the market trend improves,'' Atieno asserts.  She revealed that the current persistent drought had led to the scarcity and high prices.

Some of the daily consumables especially vegetables have become scarce due to the prolonged drought experienced by counties in Nyanza.

Several consumers interviewed, disclosed that the market dynamics had driven them to choices.

John Omollo said: “We now buy necessities. We must not buy what is a luxury.”

Like Omollo, Victor Owino also said they have to cut down buying items which are not a must.

''Things like peanut butter is a second option, not a must table diet,'' Owino explained.

He spoke as the traders claimed that the large trucks that have been supplying them with the commodities also have to cut down supplies.

Vegetable, fruits and potatoes dealer who get their stocks from neighboring counties also expressed the same concern.