Cabinet Secretary Moses Kuria Proposes Edible Oil Duty Removal Amid Opposition Pressure
On Wednesday, June 21, under pressure from the opposition to resign or be removed from office, Trade Cabinet Secretary Moses Kuria initiated reforms in the manufacturing sector by proposing the elimination of the 35% duty on edible oil.
In a letter to the National Treasury, Kuria advised his counterpart, Njuguna Ndung’u, to replace the 35% duty on imported crude oil with a 10% export and investment promotion tax.
According to Kuria, the 10% tax will stimulate the domestic edible oil manufacturing industry and reduce the nation’s reliance on crude cooking oil imports.
Because Kenya spends over Ksh102 billion on edible crude oil imports, Kuria emphasized that his tax reforms will disrupt the local manufacturing sector and increase efficiency, fairness, and effectiveness.
“It is proposed that to support local manufacturing in the edible oils value chain, we eliminate the 35% crude oil duty and replace it with a 10% exports and investment promotion levy on imported crude oil.
This tax, introduced on selected goods that local manufacturing industries can produce, is intended to encourage investment in local manufacturing, according to a portion of Kuria’s letter.
In addition, Kuria announced that the new tax reform will result in the uniform pricing of cooking oil throughout the nation. As Kuria restructures the local manufacturing sector, palm, soya, and sunflower farmers will profit the most from the sale of raw goods.
“Once the exports and investment promotion levy goes into effect, the proposed substitution will take effect and contribute to the growth of palm, soy, and sunflower farming,” Kuria added in his letter.
ALSO READ: Nairobi Senator Sifuna Files Censure Motion Against Trade Secretary Kuria for Media Attacks
The Ministry of Trade of Kuria was implicated in a scandal involving the loss of Ksh6 billion in the importation of 125 000 metric tonnes of edible oils.
Instead of importing the oil directly from foreign manufacturers, the Kenya National Trade Corporation was also accused of relying on a single supplier to import, package, and sell the oil.
Kuria, on the other hand, asserted that the imports were authorized to protect Kenyans from cartels attempting to hold the government, hostage.
After the media exposed the scandal, Kuria attacked journalists, accusing them of misrepresenting the facts and being coerced into writing negative stories.
Media unions and the Ethics and Anti-Corruption Commission (EACC) reacted angrily to his threat to order government agencies to withdraw advertisements with Nation Media Group.
EACC argued that Kuria lacked the authority to influence tenders and was at fault for threatening state officials carrying out their legal obligations.
Additionally, the opposition, led by the Azimio coalition, exerted pressure on Moses Kuria to retract his threats. Edwin Sifuna, a senator from Nairobi, exacerbated the situation by introducing a motion to censure Kuria and declare him unfit to hold office.
Cabinet Secretary Moses Kuria Proposes Edible Oil Duty Removal Amid Opposition Pressure
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