Are Base of Pyramid (BoP) Consumers Willing to Pay for Nutritious Foods? Evidence from Kenya and Uganda

Abstract

The Base of the Pyramid (BoP) consumers living in the urban informal settlement of developing countries spend over 60% of their income on food, yet malnutrition and micronutrient deficiency remains widespread among this population, pointing to the inadequacy of the foods they consume in terms of quality and quantity. In this paper we examine BoP consumer willingness to pay (WTP) for safe and nutritious multicomposite porridge flour (improved flour) in the informal settlements of Nairobi, Kenya and Kampala, Uganda. In 2016, we collected primary data from 600 consumers in the informal settlements of Kampala, Uganda and Nairobi, Kenya (300 in Kenya and 300 in Uganda). We use Tobit regression models to analyse determinants of WTP for the improved flour. Results show that both Kenyan and Ugandan consumers are willing to pay a premium for the improved flour. In addition, providing nutrition information of the flour, characteristics of household head, economic status of the household, and presence of young children between 6 and 59 months in the household influence WTP for the safe and nutritious porridge flour. The paper concludes by providing recommendations for enhancing nutrition among poor consumers in the informal settlements of developing countries.