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CS Kuria Defends Proposal to Remove Edible Oil Duty Amidst 'Cartel' Resistance

06, Jul 2023 / 2 min read / By Livenow Africa

Trade Cabinet Secretary Moses Kuria responded defiantly to an activist who filed a lawsuit opposing his proposal to eliminate the 35 percent duty on cooking oil. In a statement, the outspoken CS accused "cartels" of obstructing the development of the local industry and vowed to confront those who challenged his proposal, which aligns with the Kenya Kwanza agenda.

Expressing his frustration, CS Kuria stated, "Sued over a proposal! Good Lord! These cartels have had it smooth for far too long. They will stop at nothing. But an irresistible force will meet an immovable object. Watch this space."

The lawsuit, filed at the Mombasa High Court by activist Julius Ogogoh on Tuesday, sought to quash the proposal and demanded that CS Kuria provide statistics demonstrating that imported crude oil does not harm the local production market. Ogogoh argued that the proposal would negatively impact companies that have already invested in the sector.

Describing CS Kuria's actions as "arbitrary, ill-advised, and malicious," Ogogoh urged the court to set them aside and issue an order restraining further alleged illegalities. He contended that the proposed tax regime would directly affect the pricing of edible oils in the local market, placing an additional burden on Kenyans due to the imposed taxes.

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Responding to the lawsuit, Mombasa High Court judge Olga Sewe certified the matter as urgent and instructed Ogogoh to apply for judicial review orders within 21 days.

CS Kuria's original proposal involved replacing the 35 percent duty on edible oils with a 10 percent export and investment promotion levy. The aim was to stimulate the local industry and encourage investment.

The clash between CS Kuria and the activist underscores the contentious nature of trade policy decisions and their potential impact on various stakeholders. The outcome of the lawsuit will determine the future of the proposed removal of the edible oil duty and its potential ramifications for the local market and consumers.

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