Industry wants Sh10bn edible oil import blocked

Trade Secretary Peter Munya. FILE PHOTO | NMG 

By JAMES KARIUKI
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Edible oil manufacturers want the Sh10 billion unprocessed oil imported in May, 2018, destroyed if found to be unfortified.

Their umbrella lobby, the Kenya Association of Manufacturers (KAM), said this will deter other importers planning to bring in such products that “derail” the bid to expand local manufacturing.

“We look forward to urgent resolution of this matter that will curtail similar incidents,” said the statement.

According to Kenya Bureau of Standards (Kebs) specification, only fortified oil should be imported.

Companies say they incur extra costs to buy the commodity as required by law and allowing the cheaper unfortified consignment into the market would expose them to unfair competition. “It is also important that the matter is dealt with swiftly to prevent market distortion by giving an unfair advantage to the imported edible oil. There is also need to ensure that any duties imposed on the oil are paid,” they said.

The sentiments follow Kenya Bureau of Standards (Kebs) affirmation of their decision to withhold 500 containers with the unfortified oil awaiting further tests on samples before a final decision is made.

“We have requested Trade Secretary Peter Munya to reconsider his decision of allowing the oil into the market as it risks harming our citizens,” they said.

Mr Munya has defended his decision to release the oil, saying it is safe for consumption.

But Kebs has stood its ground saying no unfortified edible oil consignment has been released into the market since May, 2018, when 500 consignments were offloaded.

The oil importers have enjoyed heightened sales at 62 percent since the Multi-Agency Taskforce launched its nationwide crackdown on counterfeit and fake products. The development has seen many report increased investments, leading to creation of new jobs.

Some clearing and forwarding agents of the unfortified consignment have since obtained conservatory orders blocking reshipment of the consignment pending determination on whether it should be allowed into the country or not.