Nairobi, April 2, 2025 - Edible oils sector players are intensifying their efforts to persuade the National Treasury to eliminate the 10 per cent import duty on crude palm oil, even as Malaysian firms seek to deepen trade ties with local processors to expand their regional footprint. The push comes amidst concerns that the import duty, introduced in June 2024 as part of the East African Community's (EAC) Common External Tariffs (CET) harmonisation efforts, has driven up the cost of cooking oil for Kenyan consumers.

Speaking at the Malaysian Palm Oil Council (MPOC) technical seminar in Nairobi, Bidco Africa Chair Vimal Shah stated that the 10 per cent duty, coupled with Malaysia's increase of its export duty on crude palm oil from eight to 10 per cent in December 2024, has made cooking oil more expensive for Kenyans. Shah advocated for policies that would stimulate large-scale palm oil production and processing in Kenya, suggesting a minimum 25,000-acre nucleus plantation with an outgrowers system.

Shah sees Malaysia’s interest in deepening trade ties with Kenya as an opportunity to grow the edible oils sector, which has stagnated, according to government data. He pointed out the potential for establishing plantations not only in Kenya but across East Africa, referencing Bidco's existing plantations in Uganda as a successful example. Theventharan Batumalai, Regional Manager of MPOC for sub-Saharan Africa, highlighted Kenya's importance as a market for Malaysia, noting that Kenya was the fourth-largest importer of Malaysian palm oil in 2024 and is currently the second-largest trading partner in the palm oil sector. He emphasized Kenya's potential as a gateway to the East African Community, citing its advanced manufacturing-driven economy.

Kenya’s Agriculture Secretary, Collins Marangu, in a speech read on his behalf, affirmed that palm oil is a key crop in the government's plan to revive the edible oils sector, alongside canola and sunflower. He acknowledged the challenge of ensuring a continuous supply of raw materials for processing industries, given Kenya's reliance on imported oil products. In 2023, Kenya imported 798,580 tonnes of edible oils valued at Sh102 billion, with crude palm oil from Asian countries, mainly Malaysia and Indonesia, accounting for approximately 95 per cent of the import volume and value, worth Sh130 billion annually.

Marangu highlighted Kenya's significant potential for palm oil cultivation in counties such as Lamu, Kwale, Tana River, Taita Taveta, Homa Bay, Migori, Kisumu, and Busia, through outgrower schemes and large-scale plantations. According to government data, Kenya currently has about 130,000 palm trees, producing approximately 13.7 million tonnes of fresh crude, which is processed to extract oil. The seminar underscored the ongoing efforts to balance trade policies, promote local production, and ensure affordable cooking oil prices for Kenyan consumers.