Edible oil manufacturers have attributed the recent rise in cooking oil prices to a new import duty that the East African Community (EAC) adopted in June.
In a statement by the Kenya Association of Manufacturers (KAM) on Thursday, October 3, it was revealed that there is currently a 10 per cent import duty on crude palm oil.
Crude palm oil is the raw material that manufacturers use to make cooking oil.
As a consequence, the manufacturers noted that the cost of production had increased significantly hence the hike in cooking oil prices.
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"This increase in production costs is expected to negatively affect the competitiveness of Kenyan products. For instance, the price of a 20-litre container of edible oil, which previously retailed at Ksh3,800, has now risen to Ksh4,200," read the statement in part.
"Additionally, by-products from the crude palm oil refining process, such as soaps and margarine, have also become more expensive due to the introduction of this duty."
The manufacturer also added that their representatives met with the Treasury to find solutions to the rising cost of production.
Notably, the entrepreneurs warned that many families would be affected should the cost of production and taxation remain the same.
"This sector generates over Ksh130 billion in revenue and contributes Ksh52 billion in tax revenue to the Kenyan government. It directly employs 10,000 people and supports over 80,000 individuals through its value chain integration," read the statement in part.
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