Pwani Oil, maker of Fresh Fri, Salit and Fry Mate cooking oils, has temporarily shut down its oil plant in Kilifi because it has been unable to access enough dollars to import the raw materials it needs.
In a statement by the company’s Commercial Director Rajul Malde said, “Locally, the situation has been compounded by challenges faced by manufactures in accessing US dollars used in praying for imports of crucial raw materials.”
Manufactures in the country have not been spared the aftershocks of the unprecedented disruptions, coming awake of the prolonged Covid-19 crisis.
“The global supply chain has been severely impacted by the ongoing conflict in Ukraine. In addition, some countries like Indonesia have suspended exports of crucial commodities like palm oil.” Given the prevailing challenges, Pwani Oil has temporarily halted operations at it’s refinery in Kilifi as we work to resolve the problem.” Rajul Malde
Consumers Federation of Kenya (COFEK) Secretary General Stephen Mutoro wrote on his twitter “Pwani Oil halting of operations over CBK dollar rationing is a pointer to a deeper problem. Either we are too broke or some middlemen with government connection are hoarding dollars so they can offload them onto the black-market,” COFEK
With this, the Prices of cooking oil set to shoot to an all-time high this week.