Cabinet Secretary Moses Kuria Accuses Edible Oil Cartels of Orchestrating Scandalous Headlines
Moses Kuria, Cabinet Secretary for Trade and Investments. Has attempted to distance himself from the edible oil importation scandal. By asserting that cartels in the edible oils industry are sponsoring negative news articles about his ministry.
According to Kuria, the decision to have Kenya National Trading Corporation (KNTC) import edible oils was made to halt the escalation of edible oil prices.
“Mr. Speaker, I instructed KNTC to import edible oil with a target retail price of Ksh.250 per kilogram,” CS Kuria said. “Due to 170,000 jerricans, the price of oil has decreased to Ksh.218 per liter today.”
He claims that despite more than ten meetings with stakeholders in the sector. Relief for Kenyans who pay exorbitant prices for the essential good remains a pipe dream.
The process that led to KNTC awarding Multi Commerce FCZ a Ksh.8.12 billion tender. To supply vegetable oil and Shehena Company Limited a Ksh.1.3 billion tender to supply jerricans of edible oil. He told the Senate Business Committee, was competitive and not sole-sourced.
“There is no distinction between edible oils based on a single source. We do not differentiate between edible oil and other commodities, CS Kuria told the committee on Wednesday.
“We did not use a sole supplier. It was accessible. Why are rice and maize not given the same consideration as edible oil? he asked.
According to Kuria, KNTC has acquired imported goods worth Ksh.22.2 billion, and as of April 30, 2023, it had received goods worth Ksh.4.8 billion.
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The Trade CS stated that no payments to the suppliers have been made because the letters of credit have not yet matured.
Five companies, Bidco, Menengai, Kappa, Pwani, and Golden Africa, allegedly enjoyed a monopoly at the expense of the taxpayer during previous regimes, according to the CS, who has come under fire in recent days for his attacks on the media in the wake of the exposé.
He asserted that the companies were importing refined oil and performing minimal value addition in Kenya while excluding other industry participants who would be subject to a 35% levy.
“Previously, the definition of value addition that they claimed to perform was importing crude oil from Wilmar in Malaysia,” CS Kuria explained.
“However, a substantial portion of what they do consists of minimal value addition and the creation of a negligible number of jobs, which then serves as a pass to exclude all SMBs.”
In the meantime, CS Kuria asserts that Kenya and Indonesia are working together to plant palm trees in several counties across Kenya, including Kisumu, Homabay, Migori, Busia, Lamu, and Taita Taveta.
The Indonesian president will visit Kenya in August, when the partnership is expected to be formally announced, according to CS.
Cabinet Secretary Moses Kuria Accuses Edible Oil Cartels of Orchestrating Scandalous Headlines
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