The move increased imports of duty free eggs from Uganda that has now set prices at between Sh250 and Sh255 for a tray, down from Sh310.
The reduction in price is attributed to depressed demand and over-supply from the neighboring country.
Farmers in Kenya say that the over-supply has been occasioned by a dip in demand and many brokers have also turned to Uganda where a tray of eggs goes for Sh200 due to lower cost of production compared to Kenya.
Some supermarkets in Nairobi are selling at Sh350 per tray for the layers eggs and traders operating by the roadside are selling at an average of Sh270 per tray.
Kenya closed all learning institutions on March 15 with high-end hotels closing two weeks later due to travel restrictions and social distancing rules introduced by the government to contain Covid-19.
Hotels and learning institutions are the biggest buyers of eggs and now Kenyan farmers have been forced to compete among themselves and sell at drastically low prices.
Low prices can also been attributed to other Covid -19 restrictions and impacts including job losses, pay cuts and restricted movements which have hurt the purchasing power of many Kenyans.
Federation of Kenya Poultry Farmers (FKPF) is now pleading with the government to ban all eggs and chicken meat imports from Uganda to cushion local farmers and stabilize prices.
Farmers argue that if the trend continues most of them will be out of business under the prevailing environment. The cost of production in Kenya is high ranging from chicken feed, water, electricity and casual labourers which also hit egg businesses.
Hotels and eateries have started resuming business in Kenya as the country begins to ease restrictions on movements and social distancing which is likely to increase demand for eggs.
President Uhuru Kenyatta had last week directed top State officials to fast-track consultations with key stakeholders for gradual reopening of schools and places of worship, raisng hopes for different players in the economy.
The number of positive covid-19 cases in Kenya now stand at and 107 deaths, which is the highest in East Africa.