In a move to lower the cost of living and empower people at the grassroots, the government has launched the ‘Mama Pima’ edible oil dispensing machine.
This innovative venture aims to provide affordable and accessible cooking oil to low-income earners and empower registered groups who will sell the cooking oil using vending machines.
Such a practice is already in most informal settlements.
The ‘Mama Pima’ project was unveiled on Monday, August 21, 2023 by Trade and Investment Cabinet Secretary Moses Kuria.
Also in attendance were Cooperatives and MSME Cabinet Secretary Simon Chelugui, Principal Secretaries Abubakar Hassan (Investment Promotion), Alfred Ombudo K’Ombundo (Trade) and Indonesia Ambassador to Kenya Mohamad Hery Saripudin.
The event was held at DCC office Kawangware in Dagoretti South constituency in Nairobi.
Officials said this initiative showcases the government’s commitment to addressing the needs of the most economically disadvantaged citizens and empowering them to improve their quality of life.
The project introduces a creative solution that involves the installation of cooking oil vending machines.
By strategically placing these machines within residential areas, the project facilitates access to cooking oil in smaller quantities that align with the financial capacity of the residents.
Kenya National Trading Corporation (KNTC] will spearhead the project across the country.
KNTC will supply vending machine operators with affordable edible oil, thereby lowering the overall cost of living for consumers.
KNTC plans to offer vendors a litre oil cooking oil at a price of Ksh 185, enabling them to sell is to consumers at Kah. 210, a 13.5 percent profit margin.
The investment required for becoming a vendor is Sh185,000 which includes working capital.
CS Kuria noted that the ‘Mama Pima project resonates seamlessly with the Bottom-Up vision.
“Residents will be able to pay as little as 5h20 and buy cooking oil seamless,” he said.
Mr Chelugui urged groups to take advantage of different government funds that are loaning cash to buy the machines asd sell edible on
“Loans range from Sh20,000, including Hustler Fund. Take advantage of these products to invest and grow,” added Mr Chelugui.
According to KNTC Managing Director Ms Parmela Mutua, the Mama Pima’ project secis to empower Micro, Small and Medium Enterprises (MSMEs, particularly women and youth groups. By providing cost-effective edible oil and dispensing machines, the project aims to boost the MSME sector, thereby contributing to economic growth and
She added. “One of the standout features of the project is ies potential for holistic impact. Beyond making cooking and more accessible and affordable, the project creates employment opportunities. individuals and group can operate the vending machines as small businesses, contributing to job creation and fostering self-employment, avenues.”
The Mama Pima project embodies collaboration and innovation, as evidenced by the partnership with Industri Nabati Lestar (IL) from Indonesia, one oil the biggest producers of edible oil.
Kenyans have been grappling with a cost of living crisis, with the prices of key commodities including cooking oil rising. The cost of living and tax hikes proposed in the Finance Act 2022, whose implementation has been temporarily suspended by the courts, have also fueled escalating anti-government protests led by the opposition Azimio coalition.
A section of analysts, however, observed that cooking oil dispensers were already a common sight in many neighborhoods – questioning how effective the move by the Trade ministry would be.
Kuria has in recent months taken a keen interest in the edible oils space, vowing to get rid of private sector ‘cartels’ he claims are taking advantage of consumers in the space.
“We are in the process of shipping the dispensers which will be named mama pima and will be rolled out all over the country even within our informal settlements,” Kuria stated.
“This will be the end of cartels within that this sector.”
Cooking oil dispensers currently in the market are made available at retail stores and shopping centres in local neighbourhoods.
They operate similar to Milk or Water ATMs, dispensing oil as per the user’s requirements.