Crown Paints worry over high production costs as it unveils Granite finish paint for multiple surfaces
On the surface, Kenya’s paint and coating industry looks appealing. But a deeper look shows it is far from having a finer finish.
Leading paint manufacturers have raised concerns over the high cost of production, which is likely to push up paint prices. One of the major players in the industry Crown Paints says paint manufacturers are currently feeling the heat of high cost of fuel and taxes as well, which will eventually be passed on to consumers.
“Prices of raw materials have gone crazy, kerosene has been increasing, and the government has also increased taxes by raising duty on resins, plastic containers. I can see a lot of bumpy rides in the coming 3 to 4 months until these prices stabilise”, says Dr. Rakesh Rao, Group CEO, Crown Paints.
Paint makers are the biggest users of kerosene, which forms a huge part of their raw material.
In the last fuel price review by Energy and Petroleum Regulatory Authority EPRA, a litre of kerosene rose by Ksh.12.97 in Nairobi to retail at Ksh.110.82 per litre. Dr. Rakesh Rao says this is not good in the long run.
“We are users of petroleum products and have been strictly away affected…..very soon, this is a huge huge impact on our bottom line for any paint company and it has to be passed on to the consumers, we can’t afford it”, he adds.
Another key concern for the manufacturers is the 10 per cent excise tax on articles of plastics and 10 per cent excise tax on imported resins, used in the production of varnishes and adhesives. Rao says these measures are likely to increase paint prices by between six to seven percent.
Dr. Rao spoke during the launch of crown paints’ granite finish paint. The new product targets contractors, quantity surveyors, architects and homeowners, who desire a premium finish while saving natural resources.
Rao said the launch of granite finish paint was timely as the country is experiencing an increase in residential and commercial projects. Dr. Rao said the product will tap into the country’s growing property market as it offers multiple surface applications.