Edible Oil Companies Seek Ruto’s Aid to Preserve Jobs
On Monday, July 3, thirteen edible oil companies pleaded with President William Ruto to help them save thousands of jobs as the industry remained mired in uncertainty.
In a statement, the companies that make up the Kenya Association of Manufactures (KAM) noted that the industry directly and indirectly employed close to 150,000 Kenyans.
The employers further argued that the industry played a crucial role in generating revenue for the government, having paid Ksh40 billion in PAYE and income taxes.
It was also noted in the statement that caution should be exercised regarding the preference for imported cooking oil due to the importance of domestic companies to the country’s industrialization 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 service sectors,” according to the statement.
According to KAM, 99 percent of the total packaging for edible oil products, such as jerry cans, tubs, cartons, labels, and flexible packaging, is sourced locally.
“Each of these supporting industries employs more than 32,000 individuals, thereby contributing to the growth of this vital sector,” the manufacturers noted, bringing the total number of jobs in the line to 142,000.
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In February 2023, the Trade Ministry accused edible oil industries in Kenya of importing raw materials from Egypt rather than sourcing them locally.
While supporting the government’s plan to source local raw materials, the companies pleaded with Ruto’s administration to allot suitable land for palm cultivation to industry participants.
They remarked that with such an incentive, the private sector will be able to attract investments through public-private partnerships, with infrastructure development and job creation taking precedence.
In the interest of all stakeholders and the general public, the thirteen companies recommended that the government create a level playing field.
KAM made the statement two days after the High Court ordered the government not to sell imported cooking oil by the Ministry of Trade and Industry.
After the Law Society of Kenya (LSK) petitioned that the government was destroying edible oil businesses in Kenya, the government issued the order.
LSK argued that the importation of cheaper edible oil would result in the closure of local factories that paid high taxes to produce the same oil.
Edible Oil Companies Seek Ruto’s Aid to Preserve Jobs
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