Kenya: Cooking oil prices triple as palm oil costs rise 33pc

Published 2022년 3월 11일

Tridge summary

The price of crude palm oil has increased by 33% due to the Ukrainian crisis, leading to a rise in the cost of cooking oils. Before the conflict, the price of palm oil had already doubled since the start of the pandemic due to export restrictions by Indonesia. The situation is expected to lead to a ripple effect in the prices of basic commodities and food businesses. Local manufacturers are seeking government intervention to reduce fees to offset the cost to consumers. Kenya is a large importer of various vegetable oils, primarily from Malaysia and Indonesia. The disruption of alternative oil supplies, such as sunflower and soybean oil, has led to a surge in demand for palm oil.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Prices of crude palm oil have jumped by 33 percent due to the Ukrainian crisis, as sector players initiate efforts to urge the government to contain a further rise in cooking oils. Manufacturers of cooking oil are now buying palm oil, the main raw material at between $1760 (Sh200,534) per metric tonne and $1980 (Sh225,522) after the escalation of Ukraine-Russia conflicts last month. Before the conflict, the commodity retailed at $1490 (Sh168,578) per tonne, having more than doubled from $700 per tonne before the onset of the pandemic in March 2020. The price jump driven by the pandemic was attributed to export restrictions by Indonesia. "Locally, Covid-related factors had already caused a jump in the price of a 20-litre Jerrycan from Sh2,200 to Sh4,500 in under two years. After the invasion, the price shot up to Sh5,100 in under a week," said edible oils subsector chairman, Abdulghani Alwojih. "This rise is set to have an upward ripple effect in the prices of basic commodities and ...

Source: Businessdailyafrica