The sports category has moved to a new website.
ADVERTISEMENT

CS Kuria's letter to Treasury on removal of 35% duty on edible oils [Photo]

CS Moses Kuria proposed scrapping of the 35% duty and introduction of another levy

Trade CS Moses Kuria chairs a meeting to discuss the implementation framework  of the 47 County Aggregation and Industrial Parks (CAIPs) on April 13, 2023

Trade Cabinet Secretary Moses Kuria has written to Treasury Cabinet Secretary Njuguna Ndung'u, urging the removal of the 35% duty on edible oils and proposing the introduction of a 10% export and investment promotion levy.

This move aims to support the local production of edible oils and ensure stable prices for essential household items in the country.

Dated June 20, Kuria’s letter highlighted the critical role played by the edible oils value chain in determining the overall cost of basic food commodities in the nation.

He explained that while the government has implemented measures to stabilize prices, the importation of crude oil, amounting to approximately Sh102 billion, continues to hinder the growth of local manufacturing in this essential sector.

ADVERTISEMENT

To address this challenge and promote local manufacturing in the edible oils value chain, Trade CS Moses Kuria also proposed the elimination of the 35% duty on crude oil.

Instead, he suggested implementing a 10% export and investment promotion levy on imported crude oil.

This levy would be targeted at selected goods for which local manufacturing industries can produce. The goal is to encourage investments in domestic production and establish a fair pricing structure for edible oils.

ADVERTISEMENT

According to Trade CS Moses Kuria, the proposed substitution would support local manufacturing and also contribute to the growth of palm, soya, and sunflower farming.

Kenyan Manufacturers of Edible Oils

The removal of the duty on edible oils and the introduction of the export and investment promotion levy would provide a boost to local manufacturers.

ADVERTISEMENT

With the elimination of the duty, the cost of importing crude oil, a major component in edible oil production, is expected to decrease.

This reduction in costs would enhance the competitiveness of domestic manufacturers and encourage them to expand their operations. As a result, Kenyan manufacturers would have a greater opportunity to meet the local demand for edible oils and reduce reliance on imports.

Consumers

The proposed measures have positive implications for consumers of edible oils in Kenya.

By supporting local manufacturing, the government aims to stabilize prices for essential household food items.

ADVERTISEMENT

With increased domestic production, there will be a more consistent and reliable supply of edible oils, reducing the dependence on imported products.

Stable prices and a secure supply of affordable edible oils would benefit consumers by ensuring access to a vital component of their daily diet.

Farmers

The introduction of the export and investment promotion levy would have a direct impact on farmers involved in palm, soya, and sunflower farming.

ADVERTISEMENT

With the incentivization of investments in local manufacturing, there would be an increased demand for raw materials from these farming sectors.

This, in turn, would provide opportunities for farmers to expand their cultivation of palm, soya, and sunflower crops. The growth in these farming sectors would not only contribute to the local production of edible oils but also stimulate rural economies and create employment opportunities.

Economy

By reducing the dependence on imported edible oils, the government aims to strengthen the local manufacturing sector and boost the overall economy.

Increased domestic production is expected to generate employment opportunities, stimulate investments, and contribute to the country's Gross Domestic Product (GDP).

ADVERTISEMENT

Additionally, by substituting the duty on edible oils with the export and investment promotion levy, the government aims to attract foreign direct investment and enhance the competitiveness of Kenyan industries in the global market.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.
ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

Family reveals what killed Jowie Irungu's father as legal team gives way forward

Family reveals what killed Jowie Irungu's father as legal team gives way forward

Rachel Ruto reveals how she teamed up with Ruto to solve crisis through divine intervention

Rachel Ruto reveals how she teamed up with Ruto to solve crisis through divine intervention

Charlene Ruto, Waiguru & Lynn Ngugi dazzle at the East Africa Women of Excellence Awards

Charlene Ruto, Waiguru & Lynn Ngugi dazzle at the East Africa Women of Excellence Awards

Ruto’s friends, PAs & bloggers want to order me around - furious Gachagua laments

Ruto’s friends, PAs & bloggers want to order me around - furious Gachagua laments

My problem with Ruto’s men: DP Gachagua exposes alleged plot to incite leaders against him

My problem with Ruto’s men: DP Gachagua exposes alleged plot to incite leaders against him

Makadara Magistrate Monica Kivuti dies in hospital after gun attack

Makadara Magistrate Monica Kivuti dies in hospital after gun attack

DP Gachagua celebrates success of project that saw him receive threats

DP Gachagua celebrates success of project that saw him receive threats

Suspension of foreign trips & other directives given to Azimio MPs as Finance Bill 2024 battle shapes up

Suspension of foreign trips & other directives given to Azimio MPs as Finance Bill 2024 battle shapes up

Gachagua explains sudden shift in political stand that has rattled Ruto's men

Gachagua explains sudden shift in political stand that has rattled Ruto's men

ADVERTISEMENT