Wednesday, June 21, 2023 – Trade Cabinet Secretary Moses Kuria has proposed the removal of the 35% duty on edible oils.
This is even as he is facing expulsion from Cabinet due to a cooking oil scandal in which he allegedly pocketed a cool Sh6 billion from the edible oil scandal.
In a letter to the National Treasury, CS Kuria advised Njuguna Ndung’u, his counterpart, to substitute the existing 35% duty with a 10% export and investment promotion levy on imported crude oil.
According to Kuria, the 10% levy will spur the local edible oil manufacturing sector and shift the country from over-dependence on the importation of crude cooking oil.
With Kenya spending over Ksh102 billion to import edible crude oil, Kuria underlined that his tax reforms will disrupt the local manufacturing sector and improve efficiency, fairness, and effectiveness.
“To support local manufacturing in the edible oils value chain, it is proposed that we remove the 35% duty on crude oil and instead, introduce a 10% Exports and Investment Promotion Levy on imported crude oil.
“This levy, introduced on selected goods which local manufacturing industries have the capacity to produce, is meant to incentivise investments in local manufacturing,” Kuria’s letter read in part.
Further, Kuria announced that the new tax reform will create a level pricing of cooking oil in the country. As he spearheads the revitalization of the local manufacturing sector, farmers cultivating palm, soya, and sunflower crops are expected to reap significant benefits from selling their raw products.
“The proposed substitution will be effected once the exports and investment promotion levy comes into effect and will also contribute to the growth of palm, soya, and sunflower farming,” Kuria added in his letter.
Kuria is said to have come up with the new tax proposal in order to save his face and clear his name from scandals linked to the edible oil sector.
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