Government unveils plan to boost local edible oils production amid soaring imports

KENYA – The Government of Kenya has unveiled an ambitious plan in response to the escalating prices of edible oils, sparking a plea from citizens for immediate intervention.

As a significant importer of vegetable oil and Crude Palm Oil from Malaysia and Indonesia, Kenya is grappling with substantial economic implications, considering edible oils rank as the country’s second-largest import, trailing only petroleum.

With an annual expenditure of Kshs. 130 billion (US$1 billion) due to recent price surges, the government is taking proactive measures by formulating a comprehensive plan to tackle the issue head-on and fortify local production.

At the core of this initiative is the government’s focus on key crops such as sunflower, palm oil, soya, and canola, with the aim of significantly boosting the production and processing capacity of edible oils from the current 5% to an ambitious 50% within the next five years.

The comprehensive plan involves expanding the area dedicated to edible oil production from 60,000 hectares to over 250,000 hectares, with a targeted production output of 1 million metric tons.

Speaking on October 7th, 2023, in Mfangano Island, Homa Bay County, President William Ruto urged residents to actively engage in palm oil, sunflower, and soya production as a pivotal step to reduce the country’s dependence on edible oil imports.

President Ruto emphasized a collaborative approach with Nyanza region governors to strengthen local edible oil production, redirecting funds allocated for imports to benefit local farmers.

In a concerted effort with counties, the government has identified sunflower as a crucial raw material, particularly encouraging the involvement of women and youth in cultivation.

To support these initiatives, the Agriculture and Food Authority (AFA) is actively involved, procuring 600 metric tons of seeds worth Kshs. 272.4 million and providing farmers with 182,022 bags of subsidized fertilizer valued at Kshs. 455 million.

Anticipated outcomes from these interventions include the production of 40 million liters of cooking oil valued at Kshs. 8 billion and 100,000 metric tons of seedcake with an estimated value of Kshs. 2 billion.

Additionally, the government plans to support Micro, Small, and Medium Enterprises (MSMEs) in establishing cottage industries, offering affordable financing for oil presses and packaging materials, ultimately aiming to generate Kshs. 10 billion and revitalizing rural economies through direct and indirect employment.

As part of its broader strategy, the government also aims to cultivate 60,000 acres of canola in wheat-growing counties, including Nakuru, Uasin Gishu, Laikipia, Meru, and Narok.

Through collaboration with strategic off-takers and support from AFA, the government plans to produce 25,000 acres of canola in Narok during the short rains of October to December, generating an expected income of Kshs. 2.47 billion.

Furthermore, the World Bank, under the National Agricultural Value Chain Development Project (NAVDP), is set to fund the recruitment of 10 extension staff per ward, linked to ward cooperatives.

These staff members will play a vital role in enhancing farm productivity, providing extension support to farmers, collecting data, and disseminating market information through multi-value chain cooperatives.

Meanwhile, in Ivory Coast, Dekel Agri-Vision has reported a significant increase in palm oil production, reaching 3,875 tonnes in November, more than double the amount produced during the same period the previous year.

Despite facing a 25% drop in CPO prices, the company expressed optimism about the Ayenouan project, anticipating strong year-end results and reporting on annual production for 2023 in early January.

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