Manufacturers warn commodity price increase if 2024 Finance Bill is passed as it is

By Antynet Ford

Manufacturers of cooking oil  have issued a  warning over increase in prices of the crucial commodity if the Finance Bill 2024 is passed in its current form.

In a statement to the press, the manufacturers under the Edible Oil Sub Sector of the Kenya Association of Manufacturers asked for the drop of the proposed 25 per cent excise duty.

“In light of these grave implications, we urgently call upon the government to scrap the proposed 25 per cent excise duty on vegetable oils from the Finance Bill 2024.This tax is not just an economic miscalculation; it is a potential humanitarian crisis that Kenya cannot afford.” They said in their statement.

The Bill that is currently undergoing public participation had proposed 25 per cent Excise Duty on vegetable oils.

The tax is slated to apply to both raw materials and refined oils.

According to the manufacturers, the proposal will cause serious price hikes on the commodity.

In their estimation, the cost of the cooking oil will increase by 80 per cent a move they say will make life harder for low-income families who depend on the essential commodity daily.

Cooking oil is a fundamental ingredient in a myriad of everyday foods such as bread, mandazis, chapatis, and chips.

“The excise duty will cause a cascading effect on these items, inflating the price of a standard loaf of bread (400g) from Sh70 to Sh80. The ripple effects extend beyond the kitchen, affecting other essential products derived from vegetable oils.” They said.