Nipate
Forum => Kenya Discussion => Topic started by: RV Pundit on February 17, 2023, 05:30:57 PM
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this Kihii called Kuria talks too much. in Kikuyu we call people like Kuria Muthuri Kihii..meaning he is immature man. he is a bull climbing a heifer from the mouth. Kuria is educated but suffer from Dunning Kruger syndrome and a lot of chokora like behaviors
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He is not talking; already KNTC has ordered for cooking oil
He had learnt that some of the Dubai businesses were about to close deals to supply hundreds of thousands of tonnes of cooking oil to the State-owned Kenya National Trading Corporation (KNTC)
https://www.businessdailyafrica.com/bd/opinion-analysis/columnists/cooking-oil-import-queries--4126422
These companies have a combined installed capacity of 1.5 million metric tonnes of cooking oil. Currently, the estimate is that they are operating at about 60 per cent capacity.
The information I have is that the Ministry of Trade and Industry simply ignored Mr Mwangi’s letter.
In a letter addressed to the Commissioner General, Githii Mburu, the Treasury CS said the government had approved duty-free imports of a total of 125,000 tonnes of cooking oil – about 8 percent of local capacity.
The letter also revealed that the imports will be done by KNTC and that the Cabinet had introduced a new framework where KNTC was to be positioned as the anchor of State initiatives to stabilise prices of essential household commodities.
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He is not talking; already KNTC has ordered for cooking oil
He had learnt that some of the Dubai businesses were about to close deals to supply hundreds of thousands of tonnes of cooking oil to the State-owned Kenya National Trading Corporation (KNTC)
https://www.businessdailyafrica.com/bd/opinion-analysis/columnists/cooking-oil-import-queries--4126422
These companies have a combined installed capacity of 1.5 million metric tonnes of cooking oil. Currently, the estimate is that they are operating at about 60 per cent capacity.
The information I have is that the Ministry of Trade and Industry simply ignored Mr Mwangi’s letter.
In a letter addressed to the Commissioner General, Githii Mburu, the Treasury CS said the government had approved duty-free imports of a total of 125,000 tonnes of cooking oil – about 8 percent of local capacity.
The letter also revealed that the imports will be done by KNTC and that the Cabinet had introduced a new framework where KNTC was to be positioned as the anchor of State initiatives to stabilise prices of essential household commodities.
Anything that breaks cartel I welcome it, but where it the agency that monitors monopoly?? If its been sleeping find new blood. What about NEMA that is supposed to monitor polution but is in slumber.
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Kuria believes is govt being in business because it gives him a chance to eat. Bidco and menangai are importing processed oil because the market calls got it. there are a lot of billionaires that can invest in this market. the idea of cartels is out of lazy thinking and foolishness
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Kuria believes is govt being in business because it gives him a chance to eat. Bidco and menangai are importing processed oil because the market calls got it. there are a lot of billionaires that can invest in this market. the idea of cartels is out of lazy thinking and foolishness
Didn't we use to make corn oil, sunflower oil?
I guess all those huge farms that used to grow these commodities were bought out?.
Are there any more wheat farms in Narok? We were self sufficient a few years back.
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They should not claim to add value when all they do is blend and package.
And make insane profit.
KNTC will purchase duty free cheaply - and keep oil in stores - when they are market shocks - they will release.
This is how strategic food reserves ought to work.
Kuria believes is govt being in business because it gives him a chance to eat. Bidco and menangai are importing processed oil because the market calls got it. there are a lot of billionaires that can invest in this market. the idea of cartels is out of lazy thinking and foolishness
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They should not claim to add value when all they do is blend and package.
And make insane profit.
KNTC will purchase duty free cheaply - and keep oil in stores - when they are market shocks - they will release.
This is how strategic food reserves ought to work.
Kuria believes is govt being in business because it gives him a chance to eat. Bidco and menangai are importing processed oil because the market calls got it. there are a lot of billionaires that can invest in this market. the idea of cartels is out of lazy thinking and foolishness
you too funny. Kntc should be dissolved with parastals. uda is a bleating goat that kikuyus call mburi ya Ruanio..a goat that beats for no reason and you can't take it seriously
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https://www.standardmedia.co.ke/education/article/2001467433/cash-crunch-public-universities-woes-pile-amid-sh61-billion-debt
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The challenge with Kenya edible oils is not bidco..The reason bidco imports edible oils is only that we don't produce enough oil seeds because of rain dependent agriculture.Its same as maize.So what does bidco and other oil refineries do?Import edible oils worth over 65BN annually...It's the same thing as cotton maize and rice,we don't produce enough so we have to import...After all That,bidco subcontract over 30000 Kenyan farmers to produce oil seeds,employs over 25000 and I saw back in 2017 they had annual revenue of over 50BN KES,So bidco directly and indirectly revenue to GOK are over 10BN...Instead of Kuria focusing on oil seed plantations vs palm oil import and how to supply water to these plantations,He is focusing on how to make money from being a broker of the 65BN palm oil imports to a GOVERMENT controlled corporation in oil processing business...MWIZI.
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Bidco try...kenyatta and Rai Menegai & others import refined oil..while pretended its crude cooking oil.I am sure the target is the Menengai more than Bidco.If kuria action will bring down prices down...the rest are details. We must deal with Rais and kenyatta who profit from the poor.
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Kuria has addressed longterm and short term concerns . Including Manufactures and Farmers issues. All attention should be of any corruption scandal which should be prevented Whoever does not agree with this is an enemy of Kenyans.
https://www.standardmedia.co.ke/business/article/2001467447/storm-over-cooking-oil-billions-state-digs-in-on-own-import-plan
A plan to lower the cost of cooking oil is degenerating into a fight pitting the government against manufacturers.
In the plan, the government will import about 150,000 tonnes of cooking oil, which will flood the market with expectations of lowering prices.
A litre of cooking oil is retailing at about Sh330 which, although a reduction in the recent months, is still beyond the reach of many.
Manufacturers in the edible oils sub-sector, however, say the government’s plan would be detrimental to the local industry.
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They warn that the imports would put at risk the thousands of jobs created by the industry, and hundreds of thousands of indirect jobs.
The Kenya Association of Manufacturers (KAM) expressed concerns that the imports, which will be exempt from the 35 per cent import duty that refined edible oils attract, could be significantly lower prices and possibly trigger a price war. Worse, it might force local edible oils makers to sell at below cost, which would spell doom for the industry.
“KAM’s attention has been drawn by the traders’ alleged importation of finished edible oil, at a preferential import duty regime for further bulk breaking into the retail market in Kenya,” said KAM Chief Executive Anthony Mwangi in a January 23 letter to the Trade and Industry Cabinet Secretary.
“On behalf of our processing industry members, these allegations are of grave concern to the local manufacturing fraternity if confirmed to be true.” Mwangi said according to the EAC Common External Tariff (EAC-CET) regime, imported finished edible oil attracts a 35 per cent import duty to encourage and promote local processing. “It will have negative implications for the local edible oil manufacturing industry.”
KAM said the 150,000 tonnes import is against local demand of 650,000 tonnes annually, putting the ‘mystery’ importer in a position to have a bigger share of the Kenyan market than most of the 13 manufacturers of edible oil.
The manufacturers go on to say that the move is a significant departure from the Buy Kenya Build Kenya policy that aims to nurture local industries. It is also a negation of government’s plan to increase the sector’s contribution to the gross domestic product (GDP) to 20 per cent from the current seven per cent.
Responding to the manufacturers, Investment, Trade and Industry Cabinet Secretary Moses Kuria confirmed the incoming cargo, but clarified that the importer is the State-owned Kenya National Trading Corporation (KNTC).
Finished products
He added that the manufacturers had forced the government’s hand by sustaining high cooking oil prices that are partly to blame for the high cost of living.
The CS went on to cast doubt about the existence of a local edible oils industry, claiming that the companies import finished products and the much they do locally is repackage the cooking oil. “Let’s start here, who is the local industry? Who are they? Name the companies,” Kuria told Sunday Standard in response to a query on the matter.
He said the firms have not been manufacturing but instead import refined edible oil, repackage it and push it to retail outlets.
“All this while they benefit from duty-free imports because they pass the oil that they import as crude palm oil, but in reality they have been importing refined edible oil which should be attracting import duty,” he said.
“In all these years, how come they have not supported a single farmer if they are truly manufacturing locally as they claim to be doing?” He swore to break a cartel-like circle of five firms that he claims dominate the industry and always have a say on what direction retail prices take.
He added that the industry had pushed Kenyans to a corner with the unjustified high costs of cooking oil.
“They need to know that the government has options,” the CS said.
The edible oils industry, according to data by KAM, employs 10,000 people directly and another 200,000 indirectly.
The manufacturing sector’s contribution to GDP last year stood at 7.2 per cent in 2021, according to the latest data by Kenya National Bureau of Statistics (KNBS), having registered a decade-long decline from about 12 per cent in 2011.
KAM said in the letter that the government would suffer tax revenue losses through the imports.
“The alleged importation of the finished edible oil at a preferential duty regime risks tens of thousands of jobs, government revenues, and potential investment opportunities,” the CEO said. “Further, this would also have a negative signalling effect on the entire local manufacturing industry which contributes 18 per cent of total tax revenues for the government annually.”
Oil imports
The edible oils sub-sector, according to KAM, paid Sh40 billion to government through taxes such as Railway Development Levy (RDL), Import Declaration Fee (IDF), Nuts and Oil Crops Directorate levy and value added tax.
“The industry also pays corporate tax, Pay As You Earn and other ancillary taxes,” Mwangi said.
Kuria said the ministry had allowed KNTC to import in a process that was approved by the Cabinet last November.
The edible oil imports are expected to arrive in the next one week and bring down the cost of cooking oil by between 20 and 30 per cent.
“I have not opened this up to everyone but only to KNTC. The corporation has the know-how since they have been doing this since 1965…it its part of its mandate,” Kuria said.
“When we announced the plans towards end of last year, there was a drop in the cost of cooking oil.
“We expected that once KNTC has imported and started distribution across the country, the retail price of cooking oil could come down by another 20 to 30 per cent.” Earlier on Friday, Kuria said on his Twitter handle said the government would support the local industry to grow, including integration that would see farmers play a leading role in production of crude palm oil.
“The government is committed to establishing a vertically integrated edible oils industry starting from supporting farmers to grow palm oil in the Coast to value addition at the Dongo Kundu Special Economic Zone,” said the CS.
He said importing edible oil in containers and repackaging the same in 20-litre jerrycans does not meet the threshold of value addition and manufacturing.
“Until such a time when we will have a fully vertically integrated edible oils industry, the government will continue taking measures to protect consumers from powerful cartels that continue to fix high retail prices and raising the cost of living,” Kuria said.
“To these cartels and their hirelings I have this to say, in the previous ministers you found your match. In me you will meet your Waterloo. Don’t try me.”
The industry proposes another route to lowering the cost of cooking oil but one that would see the government take a hair cut in taxes that apply in the process of producing cooking oil. KAM has proposed the removal of the two per cent Nuts and Oil Crops Directorate levy, which would result to a reduction of Sh50 per 20-litre jerrican.
It also wants the government to do away with RDL and IDF on crude palm oil imports that will save Sh72 per 20-litre jerrican as well as other charges including VAT that adds Sh530 per 20-litre jerrican.
“By answering our prayers, the end consumer will save Sh667 per 20-litre jerrican, to retail at Sh4,141 down from Sh4,808,” said KAM in a separate petition to the government.
The challenge with Kenya edible oils is not bidco..The reason bidco imports edible oils is only that we don't produce enough oil seeds because of rain dependent agriculture.Its same as maize.So what does bidco and other oil refineries do?Import edible oils worth over 65BN annually...It's the same thing as cotton maize and rice,we don't produce enough so we have to import...After all That,bidco subcontract over 30000 Kenyan farmers to produce oil seeds,employs over 25000 and I saw back in 2017 they had annual revenue of over 50BN KES,So bidco directly and indirectly revenue to GOK are over 10BN...Instead of Kuria focusing on oil seed plantations vs palm oil import and how to supply water to these plantations,He is focusing on how to make money from being a broker of the 65BN palm oil imports to a GOVERMENT controlled corporation in oil processing business...MWIZI.
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Seeing bidco advert..25k farmers in East Africa..looking for 30,000 tonnes of sunflower and soya
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Why can't counties give farmers free soya and sunflower? We import 133 billion kshs of cooking oil. This can support half a million farmers
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Menengai rai apparently leases kenyatta rongai farm for avocado..they are in bed in Timsales. Must be dealt with
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Kenyatta have huge tracts of land to produce their own seed oil.They don't have to import.secondly,Nowadays timber harvesters have shifted to private forestry plantations,GOK forests are depleted.
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Kenyatta have huge tracts of land to produce their own seed oil.They don't have to import.secondly,Nowadays timber harvesters have shifted to private forestry plantations,GOK forests are depleted.
They should produce..but import refined oil while passing it for crude is illegal null n void.They should import it as finished product.
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Kenyatta have huge tracts of land to produce their own seed oil.They don't have to import.secondly,Nowadays timber harvesters have shifted to private forestry plantations,GOK forests are depleted.
They should produce..but import refined oil while passing it for crude is illegal null n void.They should import it as finished product.
There is nothing like crude cooking oil.
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That is what import..crude cooking oil
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Pundit is right. Crude cooking oil exist. Prof Magufuli fought oil cartel who use to mix processed and crude cooking oil to max profits. He explain they buy crude oil from high sea pirates cos it's not sold in official channels.
Check @18 minute, @25 minute
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Pundit is right. Crude cooking oil exist. Prof Magufuli fought oil cartel who use to mix processed and crude cooking oil to max profits. He explain they buy crude oil from high sea pirates cos it's not sold in official channels.
Check @18 minute, @25 minute
absolutely...they import refined oil..repackage while getting huge tax benefits