Cooking Oil Prices Set to Soar 

Kenyans may need to allocate more funds for the purchase of cooking oil and its associated products due to the recent decision by President William Ruto’s administration to implement a 10% import duty on crude palm oil.

As per the East African Gazette Notice released on Sunday, June 30, 2024, Kenya has requested to increase the duty on crude palm oil from 0% to 10%. This move aligns Kenya with Uganda, which has also raised its import duty on this essential raw material used in the production of cooking oil, soap, margarine, and certain cosmetics.

The Gazette notice stated, “Uganda and Kenya will adopt the EAC CET rate of 0% and implement a duty rate of 10% for one year.” Additionally, Kenya will maintain the 25% EAC CET rate on other palm oil refined products and apply a duty rate of 25% or US$500 (KSh 64,632) per metric ton, whichever is higher, for one year.

The implementation of this new tax could potentially lead to an increase in prices for cooking oil, soap, margarine, and glycerine cosmetics. A recent survey revealed that a liter of cooking oil is currently priced at KSh 330.

Data from the Kenya National Bureau of Statistics showed that in June 2024, a liter of cooking oil was sold at an average of KSh 326.36, coinciding with a 4.6% decrease in inflation.Speaking during a certain interview , Kenya Association of Manufacturers (KAM) Chief Operations Officer (COO) Tobias Alondo predicted a 10% rise in the prices of cooking oil and related products.

Alondo stated, “Due to the 10% import duty on Crude Palm Oil, consumers can expect a minimum 10% increase in the price of cooking oil.” The 10% import duty on crude palm oil may result in manufacturers transferring additional operational expenses to consumers, potentially increasing the price to KSh 360 per liter.