By Mumbi Mutoko
In a bid to address the rising cost of cooking oil and boost the local economy, the edible oils manufacturing sector in Kenya has called upon the government to allocate suitable land for palm growing.
With the objective of ensuring sustainable growth and promoting local competitiveness, industry players are seeking public-private partnerships to invest in palm cultivation, infrastructure development, and job creation.
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The edible oil sub-sector, acknowledging its pivotal role in the economy, stated that it believes cultivating oil palm in Kenya will have a transformative impact on the industry. By supporting backward integration, the sector said in a statement that it aims to lower the cost of cooking oil while safeguarding jobs and facilitating economic growth through value addition.
In a statement issued by the sector through Kenya Association of Manufacturers (KAM), they emphasize the importance of finding a lasting solution that aligns with the government’s “Buy Kenya, Build Kenya” agenda.
The industry’s proposal suggests working closely with both national and county governments to identify suitable zones for cultivating palm fruit and sunflower. As part of the Agriculture for Industry (A4I) initiative led by the Kenya Association of Manufacturers (KAM), the private sector aims to utilize the 2% NOCD (National Oil Corporation of Kenya) levy already contributed by the sector to develop palm, soya, and sunflower farming as envisaged.
“In 2022 the industry paid to the Kenya Revenue Authority and the Agriculture and Food Authority in excess of Sh40 billion in form of PAYE and income taxes. Others include the Railway Development Levy, Import Declaration Fees, National Oil Crop Development (NOCD) Levy and Value Added Tax. In addition to labour, processing, packaging and distribution costs, direct taxes account for approximately 22% of the cost price of cooking oil,” KAM said.
While the cultivation of oil palm requires patience, with an expected seven to eight years before the first fruit crop harvests, the industry believes that the nascent period will bring about numerous multiplier benefits for the economy. By investing in palm cultivation and the associated value chain, the sector aims to create jobs, improve infrastructure, and contribute to the country’s overall economic growth.
The demand for suitable land allocation for palm growing reflects the sector’s commitment to driving local manufacturing and fostering a self-sufficient edible oils market. By harnessing public-private partnerships and government support, the edible oil industry in Kenya strives to provide affordable cooking oil to its citizens while contributing to the nation’s economic prosperity.
