Edible oil manufacturers have warned of a possible rise in the cooking oil prices if the government does not rescind the 10 per cent import duty on crude palm oil.
The levy that came into effect on July 1, they claimed, will see rise in the cost of living in the country as the price hike will have ripple effect on key basic household commodities.
This is because the prices of any product that requires oil will likely go up.
In a dispatch to the newsrooms, the players under the Edible Oil Manufacturers Association of Kenya, appealed for the stay on execution of the duty, for the sake of Kenyans.
“With cooking oil also being an important component in production of essential everyday products like soap, bread, mandazi, chapatis and margarine, the prices of these essential household products will also go up and further push up the cost of living for millions of struggling Kenyans,” the manufacturers said in a statement.
The move they noted, will have a devastating effect on the majority low-income earners.
The move is likely to make life even harder for low-income earners who depend on the essential commodity on a daily.
Cooking oil is a key element in a number of everyday foods like bread, mandazi, chapati and chips.
The new import duty is as a result of Kenya’s application of East African community common external tariff to raise import duty on crude palm oil from the current zero rate.
The regulation was published in the EAC Gazette No.18 on June 30, 2024.
The new levy comes in the backdrop of countrywide protests against increased taxation that forced the President to drop the controversial tax bill.
The withdrawn Finance Bill 2024 had proposed 25 per cent tax on both raw and refined vegetable oils.
“In view of the ongoing uproar and demonstrations against tax hikes across the country, we call upon the government to urgently seek a stay of execution of these new taxes as this single act will cushion millions of Kenyan consumers, especially the vulnerable ones, against imminent significant price hikes for these essential household products,” the manufacturers said.
The EAC External Tariff (EAC CET) has also imposed a duty rate of 25 per cent on mobile phones, a move that is expected to see the prices of the electronics increase.
Duty rate charged on Television sets will also climb from the 25 per cent in the last financial year to 35 per cent.