Manufacturers of edible oils in Kenya have petitioned the government to delay the implementation of 10 percent duty on imported crude palm oil that became operational on July 1, 2024, calling it punitive and insensitive at a time Kenyans are going through hard times.
The Edible Oil Manufacturers Association of Kenya notes that imposition of the tax on imported crude palm oil, a key raw material used in the production of cooking oil will lead to significant rise in price of the commodity, an essential household staple for millions of Kenyans.
Mr Billow Kerrow, former Mandera Senator and chairman of Darfords Industries limited, a local edible oil manufacturer, warns that the imposition of the duty will leave manufacturers with no option but to cascade the costs to consumers.
Besides the new tax, locally, there are four other taxes imposed on imported crude palm oil—Value-added tax (VAT) at 16 percent, Import Declaration Fee (IDF) at 2.5 percent and Railway Development Levy (RDL) at 2 percent.
There is also the Oil crops and nuts development (Ocnd) levy charged at the rate of 2 percent.
“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 this new tax,” says Mr Kerrow.
The former Senator adds; “this single act will cushion millions of Kenyan consumers, especially the vulnerable ones against imminent significant price hikes for these essential household products.”
The new levy comes just days after President William Ruto last week announced that he had declined to sign the “controversial and punitive” Finance Bill 2024 after massive demonstrations against it by Kenyans across the country.