Government Reveals Strategy to Lower Cooking Oil Prices

May 31, 2024

The Committee on Trade, Industry, and Cooperatives says it will consult ministry officials and other key stakeholders in the edible oils sub-sector to tackle the rising prices of cooking oil.

Aldai Member of Parliament Marianne Kitany, the Committee’s Vice Chairperson, announced the decision during a meeting with a group of edible oil manufacturers in the country on Wednesday, May 29.

During their presentation to the committee, the manufacturers, led by Vimal Shah, the Chairman of Bidco Africa Ltd, cautioned that the price of this essential commodity is expected to increase further due to the high cost of production.

Shah highlighted the lack of government incentives for local manufacturers, pointing out that the state has primarily directed incentives towards international firms.

He noted that this imbalance compels local manufacturers to transfer the high production costs to consumers.

Also Read – Finance Bill 2024 Proposes 80% Increase in Cooking Oil Prices, Manufacturers Lament

Accompanying him were Nitin Shah, CEO of KAPA Oil, Rajan Malde, Director of Pwani Oil Products, and Fathi Saeed, Managing Director of Golden Africa Kenya, all of whom echoed concerns about the elevated taxes contributing to the rising costs of production.

Kitany acknowledged the concerns raised by the manufacturers and underscored the significance of supporting home-grown industries within the multi-billion-shilling sector.

The Committee’s initiative seeks to promote dialogue and formulate strategies to mitigate the financial challenges encountered by local manufacturers, thereby benefiting consumers by stabilizing the prices of cooking oil.

“As a committee, we have established that there is a serious disconnect between the manufacturers of edible oil and the government. We will convene a roundtable with Ministry officials and other stakeholders to find ways of reducing the cost of production of cooking oil,” Kitany said.

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