Food oil producers insist on canceling a 10% duty on crude palm oil in Kenya due to the threat of price increases.

Lobbyists representing the interests of vegetable oil producers have appealed to the government to halt plans to introduce a 10 percent duty on crude palm oil to avoid an increase in vegetable oil prices.

This new tax came into effect this month after Kenya decided to apply the East African Community's common external tariff, which allows for higher import duties.

According to information published in the East African Gazette on Sunday, June 30, 2024, Kenya applied to increase the duty on crude palm oil from 0 to 10 percent, and this proposal was approved by the Council of Ministers of the East African Community for the introduction of the Common External Tariff (CET).

Thus, Kenya is joining Uganda, which has already raised import duties on raw materials used in the production of vegetable oil, soap, margarine, and various cosmetic products.

However, vegetable oil producers warn that the introduction of a 10 percent duty will lead to a significant increase in vegetable oil prices, which are an essential product for millions of Kenyans.

Data from the Kenya National Bureau of Statistics show that in June 2024, the average retail price of a liter of vegetable oil was 326.36 shillings. The introduction of the new tax could soon push the price up to 360 shillings per liter of oil.