The price of cooking oil could rise further in the future amid fears of an impending shortage.
A severe shortage of dollars and a small sale of palm oil from Indonesia, the world’s largest producer, could make the situation worse. There has been a 28.6 percent increase in the price of cooking oil since February, with one liter now selling for 445 shillings.
Although some producers have reduced production, no import of edible oil is expected in Kenya by June 20. Cooking oil companies say dollar crisis, war in Ukraine and Indonesian bans have hampered imports of raw materials used in cooking oil production .
The Kenya Manufacturers Association (KAM) has said it imports raw materials worth 11 billion shillings every month.
“The shortage of foreign exchange has hampered domestic production. Our factories need foreign exchange to import raw materials. The edible oil industry was severely affected. We import thousands of metric tons of crude oil every month. So it needs more than $ 100 million every month, ”said Mr. Abdulghani Alwojih, president of the small industry.
Ukraine is the largest exporter of sunflower oil in Kenya, while the drought in South America has increased the price of soybean oil, which is generally a cheaper alternative.
According to the Mombasa port schedule, out of the 14 ships scheduled to dock between June 6 and June 20, none will carry palm oil and vegetables. Fourteen will carry container products: wagons (six), clinker (two), rice bags (one), wheat in bulk (one), fertilizer (two), and metal products (two).
Kenya Ports Authority records show palm oil and vegetables were last shipped on May 19, via MV Maritime Venessa and MV Navigation 8 Guard.
“Due to the challenges, Pwani Oil has temporarily suspended operations at its Kilifi oil refinery while we address this issue. However, we would like to assure our customers, employees, suppliers, partners and other stakeholders that this is a temporary measure and The business continues to operate and our products are available in stores, ”said Rajul Malde, Coastal Oil Trade Director.