Why Mama Pima Cooking Oil Dispensers Trade Model Launched by Moses Kuria Flopped Massively and the Best Alternative You Can Go for And Succeed

On August, 2023, Kenya’s then Cabinet Secretary for the Ministry of Investments, Trade, and Industry, Moses Kuria, launched the Mama Pima Salad Oil ATM. The initiative aimed to provide consumers with easier access to cooking salad oil. However, a closer look at the initiative raises questions about the feasibility and potential impact on Kenya’s economy and manufacturing sector. In this post, we shall look at why Mama Pima cooking oil dispensers trade model launched by Moses Kuria flopped massively and the best alternative you can go for and succeed.

Why Mama Pima cooking oil dispensers trade model launched by Moses Kuria flopped massively and the best alternative you can go for and succeed

A closer look at Kenya’s Mama Pima salad oil ATMs investment and trade model launched by Moses Kuria flopped

• Expensive to the target market and more affordable alternatives

The Mama Pima Salad Oil ATM was priced at 185,000 Kenyan Shillings, which is a significant amount for the target market. This price stands in stark contrast to existing options in the market, where similar cooking oil machines are available locally for as low as 35,000 to 50,000 Kenyan Shillings. The decision to introduce a more expensive model raises questions about the rationale behind its pricing and the long-term viability and benefits for Kenya’s economy and manufacturing sector.

• Poor research about the viability of the model

Considering that relatively lower-priced alternatives already exist in the country it either shows lack of research or just a deliberate effort to make the project fail. The latter looks more realistic considering that has been the trend in Kenya where money is given out to actualize an initiative but ends up in people’s pockets. However, even if the intentions were good, the execution was wrong.

• The biggest beneficiary would be Indonesia instead of Kenya

At the core of the issue was the beneficiaries of the the Mama Pima  cooking oil trade. Indonesia and Malaysia produces a massive 85% of the world’s palm oil, while Africa’s contribution to palm oil production is just 9%, with Nigeria being the largest consumer. This makes it clear that Indonesia was the primary beneficiary of the project, given its dominance in the palm oil market.

• Negative impact on local Kenyan manufacturers of cooking oil

The impact on Kenya’s manufacturing sector was another important consideration. The investment in the Mama Pima cooking oil initiative raised concerns about its effect on local manufacturers. Local cooking oil manufacturing companies faced the risk of tough competition from the influx of imported oil from Indonesia. This could have resulted in job losses and reduced revenue for Kenya’s manufacturing industry.

Negative impact on local Kenyan manufacturers of cooking oil ATMs

Not only did the project pose a threat to the local cooking oil manufacturing companies but also would have had an impact on local manufacturers of cooking oil vending dispensers. There was no indication that the government planned to source the cooking oil ATM machines from local manufacturers. Even if that would have been the case, we know due to the corruption, only a few would have benefitted and those are the ones willing and had the money to bribe the right people so they can be awarded the supply tenders.

The timing and priority were not ideal

The timing of the initiative was also questionable. While the government’s focus on innovation and modernization was commendable, it raised concerns about prioritization. In a country where unemployment and underemployment remained significant challenges, channeling resources into a project that threatened local jobs seemed like a misplaced effort. As mentioned earlier, this move would have negatively impacted both local manufacturers of cooking oil vending machines and cooking oil producers. The potential consequences on employment and overall economic growth could have been substantial.

The option to farm oil palm trees locally would take time and not have an immediate impact on local economy

Encouraging palm farming was a positive step toward diversifying Kenya’s agricultural sector. However, it is important to acknowledge that the benefits of palm oil farming, including actual production, take time to materialize. Palm trees can take at least five years to mature and begin producing oil, depending on the species, with an additional year spent in the nursery. The government’s focus on immediate solutions, like the Mama Pima project, risked overshadowing the long-term benefits that sustainable agricultural practices could bring.

Given these factors, it was crucial to consider the bigger picture and reflect on the broader implications of such an initiative. While the Mama Pima Salad Oil ATM concept may have seemed convenient, the potential negative impacts on the local economy, manufacturing sector, and job creation outweighed its immediate appeal.

To avoid these issues, the government and stakeholders should have considered a more holistic strategy. Redirecting resources toward strengthening the manufacturing sector, promoting local industry growth, and investing in sustainable agricultural practices would have been more in line with Kenya’s economic needs and long-term goals. By adopting a balanced approach, Kenya could ensure that its investments not only serve the nation’s best interests but also contribute to its overall prosperity.

What is the alternative to Mama Pima Cooking Oil Dispensers trade model by the Kenyan government

As mentioned earlier, the local market has been working just fine whether it’s with cooking oil manufacturing or cooking oil dispensing machines. The best alternative to Mama Pima Cooking Oil Dispensers trade model by the Kenyan government is starting your own salad ATM vending business using a locally manufactured cooking oil ATM. Starting a cooking oil vending business in Kenya is relatively easy and inexpensive. With a locally made salad oil dispenser youths and many other people without big capital or incomes can start one as a main business or a side hustle. With less than half of what the government required you to invest, you can easily start a cooking oil business in Kenya.

What You Need to Start a Cooking Oil ATM Business in Kenya

Starting a cooking oil ATM business in Kenya can be a lucrative venture, but it requires careful planning and the right setup to ensure success. As key industry players in manufacturing high-quality salad cooking oil ATMs, we have compiled some vital insights to help you get started. Whether you’re new to the industry or looking to expand your business, this guide outlines the essentials you need to start and succeed in a cooking oil ATM business in Kenya.

Key Requirements for Starting a Cooking Oil ATM Business in Kenya

1. Business Premises in an Ideal Location

One of the most critical factors for success in a cooking oil ATM business is choosing the right location. Your business should be located where there is high foot traffic, such as near markets or along busy streets. Here’s what you should consider when selecting your premises:

• Accessibility: Ensure your premises are easy to reach for both customers and suppliers. Good road access and proximity to public transportation routes are important for convenience.
• Social Amenities: The location should have essential amenities such as water, sanitation, and security. These contribute to the smooth running of your business and the comfort of your customers.
• Space: Depending on your business model, the size of your premises will vary. If you’re only selling cooking oil, a small space of about 1.5 meters by 1.5 meters will suffice. However, if you plan to offer additional products, you’ll need more space to store inventory and accommodate customers.
• Affordability: It’s important to manage costs wisely, especially as a start-up. Choose a location that fits within your budget and offers affordable rent. Ensure that your expected income will cover ongoing costs like rent, utilities, and salaries.
• Source of Power: Your cooking oil ATM needs a stable power source. Ensure the premises have a reliable electricity connection. Solar power can also be an excellent long-term investment, with a generator serving as a backup during power outages.

2. Business License

Operating a legal business in Kenya requires obtaining the necessary permits and licenses. You’ll need to apply for a single business permit from your county government offices before starting your cooking oil ATM business. This ensures that your business operates within the legal framework, avoiding potential fines or closures.

3. Cooking Oil ATM Machine

The success of your business hinges on the quality of your cooking oil ATM machine. It’s important to invest in a reliable, high-quality machine to ensure smooth daily operations and customer satisfaction. Vinsol, a leading manufacturer of salad cooking oil ATMs in Kenya, provides durable and efficient machines tailored for this type of business. A high-quality salad oil ATM will prevent breakdowns and offer a seamless experience for your customers.

4. Reliable Cooking Oil Supplier

Having a consistent and trustworthy supplier for your cooking oil stock is crucial. Ensure that your supplier can meet your demand consistently. It’s advisable to maintain a buffer stock that lasts at least a week, especially if you are located in an area where supplies might be infrequent. In more remote areas, consider keeping a stock that can last up to two weeks or even a month to avoid business disruptions.

Why Mama Pima cooking oil dispensers trade model launched by Moses Kuria flopped massively and the best alternative you can go for and succeed – Conclusion

We have looked at why Mama Pima cooking oil dispensers trade model launched by Moses Kuria flopped massively and the best alternative you can go for and succeed. It is evident that the initiative was meant to fail on arrival as it wasn’t viable for the target audience. Instead of benefitting the local economy, it would have benefitted palm oil producing countries more and killed local businesses and as a result kill local jobs. That’s why we felt obliged to give an alternative model that is realistic having been tested and actually being done even now. And also one that is affordable to start even by the youth.

Starting a cooking oil ATM business in Kenya presents a promising opportunity, especially with the right approach and setup. By focusing on critical factors such as location, licenses, equipment quality, and maintaining a steady supply chain, you increase your chances of running a successful operation.

Investing in high-quality equipment from trusted manufacturers like Vinsol and securing reliable suppliers are essential steps to establish a profitable business. With careful planning and execution, a cooking oil ATM business can offer a steady income stream and contribute to your entrepreneurial success.

Where to buy best quality cooking oil dispensing machines in Kenya

Now that we have seen the best alternative to Mama Pima Cooking Oil Dispensers trade model by the Kenyan government is starting your own salad ATM vending business using a locally manufactured cooking oil ATM, you may want to start one. But where do you buy the best quality cooking oil dispensers in Kenya? The answer to that is Vinsol. We are a leading manufacturer of high quality cooking oil ATMs in Kenya. If you need one don’t hesitate to call us.

Contact us today to order a cooking oil ATM

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