Green Pricing Practices and Performance of Food and Beverage Manufacturing Firms in Kenya.

Abstract

Green pricing is still a cornerstone for manufacturing firms to promote greener innovations and improve the firms' financial and non-financial performance. However, existing empirical evidence on the relationship between green pricing practices and performance improvements of food and beverage manufacturing companies in Kenya remains limited. This study examined the effect of green pricing practices on the financial and non-financial performance of food and beverage manufacturing firms in Kenya. The study used the Natural Resource Based View and Institutional theory to carry out census of all 192 food and beverage manufacturing firms registered by Kenya Association of Manufacturers as of 2025. A cross-sectional research design was used, and structured questionnaires were used for data collection from the heads of marketing departments. The study received 164 responses (85.4% response rate). Descriptive and inferential statistics were used for data analysis. The results showed that the green pricing had a positive and significant influence on the financial and non-financial performance, thus rejecting the null hypotheses. Therefore, green pricing practices significantly form the basis for determining firm’s financial and non-financial performance. It suggests incorporating costs of eco-labels, premium pricing, and customers' willingness to pay into pricing models to encourage sustainability and long-term firm performance.