Home News Business Pwani Oil temporarily halts Kilifi plant operations

Pwani Oil temporarily halts Kilifi plant operations

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[Pwani Oil Commercial Director Rajul Malde. Photo/File/June, 06, 2022].

Pwani Oil Company, manufacturers of edible oils have announced a temporary halt of its operations citing various challenges among them drastic shortage of the dollar witnessed in the country.

Pwani Oil is the company behind Salit Oil, Mpishi Poa, Popco oil and Fresh Fry cooking oil products as well as soaps and detergents among them Ushindi, Sawa bathing soap among others.

Pwani Oil Commercial Director Rajul Malde says the company has faced various obstacles in accessing dollars that it has been using in paying for imports of raw material.

“Pwani Oil has temporarily halted operations at its Kilifi plant in Kikambala but we are working to resolve the challenges. We want to assure our customers, employees, suppliers, partners and other stakeholders that this is a temporary measure and the business remains in operation and our products available in retail outlets,” Mr Malde said.

Global factors

In a statement, Malde also said the Ukraine-Russia war has negatively impacted the global supply chains.

He also cited palm oil shortage which was occasioned by suspension of key producers among them Indonesia that halted palm oil export.

“Kenyan manufacturers have faced it rough following unprecedented disruption, coming in the wake of the prolonged Covid – 19 crisis,” added Malde.

This comes barely a week after the Kenya Association of Manufacturers (KAM) warned that the ongoing dollar shortage in the country poses a serious threat to manufacturers who rely on dollars to import key raw materials for processing.

KAM further warned that the crisis is affecting the relationship of manufacturers with suppliers and risks destroying Kenya’s reputation as an open market.