Pwani Oil, the manufacturer of Freshfri, Salit and Fry Mate cooking oils, has temporarily shut down its oil plant due to shortage of raw materials. The company claimed that it has been difficult to access dollars to pay its suppliers on time.

However, the consumer goods manufacturer said that on Friday its bankers were only processing half of the dollar orders it requires to pay the suppliers of crude palm oil imports from Malaysia amid stiff global competition.

“Getting sufficient amount of dollars required to support the factory in terms of getting sufficient raw materials is not happening. We are not even running the plant right now because of lack of raw materials [crude palm oil],” Pwani Oil Commercial Director Rajul Malde said.

The director also stated that they are competing with the same oil with other countries. He added that the situatin can get better should dollar situation improve.

“We are competing for the same oil with the rest of the world and, therefore, prices are high. Added to that, we can’t pay on time so we don’t get priority in supply.”

“The situation can only improve if the dollar situation improves. And I am not seeing the dollar situation improving on its own without the central bank intervening,” Mr Malde said.

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“We are expecting one consignment [of palm oil] in the middle of this month and then after that there’s no more supply until the end of July. The one that is coming next month is dependent on dollar availability. Whether we will be able to pay to release that cargo.”