Thirteen edible oil companies on Monday, July 3, implored President William Ruto to help them save thousands of jobs as the industry continued to be shrouded in uncertainty.
In a statement, the members of the Kenya Association of Manufactures (KAM) noted that the industry employed close to 150,000 Kenyans directly and indirectly.
The employers further argued that the industry played a critical role in helping the government generate revenue having paid Ksh40 billion in Pay As You Earn (PAYE) and income taxes.
In the statement, the companies urged caution over the government's preference for imported cooking oil saying local companies were key in the country’s industrialisation agenda.
“The industry employs over 10,000 people directly and provides another 100,000 jobs and livelihoods in farming (Sunflower, Soya and Corn), transport, packaging and distribution as well as other related ancillary product and services sectors,” the statement read in part.
According to KAM, 99 per cent of edible oil packaging products are sourced locally, including jerry cans, tubs, cartons, labels and flexible packaging.
“All of these supportive industries employ over 32,000 people, contributing to the development of this important sector,” the manufacturers noted bringing the total number of jobs in the line to 142,000.
The Trade Ministry had in February 2023, accused the edible oil industries in Kenya of acquiring raw materials from Egypt instead of sourcing them locally.
Voicing their support for the government’s proposal to source raw materials locally, the companies pleaded with Ruto’s administration to allocate suitable land for palm cultivation to industry players.
They noted that with such incentive, the private sector will be able to harness investments through public-private partnerships while prioritizing infrastructure and job creation.
The 13 companies noted that the government should create a level playing field for all players which they observed would be in the best interests of all stakeholders and the general public.
KAM made the statement two days after the High Court ordered the government not to sell cooking oil imported into the country by the Ministry of Trade and Industry.
The order was made after the Law Society of Kenya (LSK) petitioned that the government was killing edible oil businesses in Kenya.
LSK had argued that importing cheaper edible oil would in effect lead to the shutdown of local factories that were paying high taxes to produce the same oil.
