December 12, 2025

Profit margin regulation – Further price cuts

The existing price reduction measure, combined with the limitation of retail profit margins, has been extended until the end of February 2026 and expanded to include 13 additional products.

The newly added products include beef fillet, beef brisket, pork liver, liver sausage, fresh and spreadable cheese, fruit and vegetables, as well as baby food.

Retail margin cap is having a significant impact. Prices of affected products have dropped by an average of 27% in drugstores and by more than 20% in grocery stores.

This has also influenced the inflation rate. According to the Central Statistical Office (KSH), consumer prices rose by only 0.1% in November compared to October. As a result, the inflation rate fell to 3.8%, entering the central bank’s target range of 2–4%.