February 9, 2025
Why Kenyans May Pay More For Cooking Oil Despite Finance Bill Drop

Why Kenyans May Pay More For Cooking Oil Despite Finance Bill Drop

Kenyans may still pay more for cooking oil and soap as the government considers imposing a 10% import duty on crude palm oil.

In a gazette notice issued by the East African Community on June 30, it was communicated that Kenya intends to apply the duty rate for one year.

Previously, crude palm oil was not subject to import duties in the fiscal year 2023/2024.

“Uganda and Kenya to stay application of the EAC CET rate of 0 percent and apply a duty rate of 10 percent for one year,” read the gazette notice in part.

Crude palm oil is a major raw material used in the production of vegetable cooking oil in Kenya.

Furthermore, palm oil is a major raw material in the production of bar soap, another common product used in Kenyan households.

Furthermore, Kenya imports the majority of the crude palm oil used in its manufacturing industry from Malaysia and Indonesia.

This predicted cost increase comes even after the government withdrew the contentious Finance Bill of 2024, which proposed raising taxes on cooking oil.

If this occurs, Kenyans will likely have to dig deeper into their pockets to afford the basic commodity.

Earlier this year, a foreign investor manufacturing cooking oil in Kenya expressed dissatisfaction with Kenyan taxation policies, claiming that the country’s business environment was unpredictable and deterred investors.

The investor, whose company has been in operation in 14 countries for over 86 years, stated that he had never experienced such a situation since entering the business, describing Kenya as having the most unstable tax policies.

To reduce manufacturing costs, the manufacturer urged the government to tax the finished product rather than raw materials.

Why Kenyans May Pay More For Cooking Oil Despite Finance Bill Drop

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