The Lower Eastern Times Opening The Third Eye
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Proposals in the Finance Bill 2024 indicate a looming 80% increase in cooking oil prices, a move vehemently contested by the Edible Oil Manufacturers Association of Kenya.
They argue that the suggested 25% excise duty on vegetable oils, part of the proposed bill, would create an unbearable financial burden for consumers, potentially leading to a humanitarian crisis.
In a statement released recently, the association highlighted the widespread impact of such a measure, predicting a sharp surge in the cost of cooking oil, a staple in Kenyan households. They anticipate an 80% hike in prices, rendering the commodity inaccessible to many.
The looming deadline for public input on the proposed bill is May 28th, and stakeholders are expressing concerns about the ripple effects. Not only will cooking oil prices skyrocket, but other essential goods like bread, soap, and margarine are also expected to see significant price hikes if the bill is enacted.
Furthermore, the association warns of broader economic repercussions, including potential job losses in the edible oils sector, which currently directly employs around 10,000 people and indirectly supports over 30,000 jobs.
They argue that the proposed tax would hinder local manufacturing of edible oils, contradicting national policies aimed at promoting local value addition.
In addition to the Edible Oil Manufacturers Association, other groups such as the Kenya Bankers Association, the Association of Kenya Insurers, and digital lenders are also opposing the tax provisions outlined in the bill.
