Inside Kenya’s Plan to Cut Edible Oil Imports and Boost Local Production

Kenya is accelerating efforts to transform its agricultural sector into a value-driven industrial engine, with a renewed focus on local processing of crops such as macadamia, avocado, and sunflower to reduce the country’s heavy reliance on imports, particularly edible oils.

At the center of the government’s strategy is a push toward agro-industrialisation, a policy direction aimed at ensuring that Kenya processes what it produces rather than exporting raw materials and importing finished goods at higher costs.

Speaking during a tour of Kakuzi Plc’s orchards and processing facilities in Murang’a County, Investments, Trade and Industry Cabinet Secretary Lee Kinyanjui emphasized the urgency of shifting from raw exports to value-added production.

“Instead of exporting raw produce and importing finished goods, we must process locally and export high-value products,” Kinyanjui said, underscoring the government’s “Buy Kenya, Build Kenya” agenda.

The policy shift comes against the backdrop of a staggering import bill. Kenya currently spends over KSh 500 billion annually importing agricultural products, including edible oils that could be produced domestically.

For policymakers, this represents both a challenge and an opportunity.

By investing in local agro-processing, the government hopes to reduce import dependency, strengthen rural economies, and position Kenya as a competitive exporter of high-value agricultural goods.

A key area of focus is edible oil production. Despite favorable climatic conditions and vast agricultural potential, Kenya produces only a fraction of the edible oils it consumes, with the majority sourced from international markets.

Kinyanjui pointed to macadamia as a prime example of untapped potential, noting that local processing into products such as cold-pressed oil could significantly reduce imports while creating new revenue streams.

“We have the capacity to produce edible oils from macadamia and other oil crops. This will play a key role in reducing imports and promoting local industry,” he said.

Private sector players are already aligning with this vision. Kakuzi Plc, one of Kenya’s leading agribusiness firms, is expanding its value-addition capacity, investing in processing plants and diversifying into new product lines, including macadamia oil, ready-to-eat products, and blueberries.

The company aims to grow its export earnings to over $100 million annually in the medium term, supported by investments exceeding $15 million this year to expand its blueberry farming operations.

Kakuzi Managing Director Chris Flowers said the firm’s strategy is centered on producing export-grade, value-added goods while also catering to the local market.

“The growth and diversification plan is anchored in promoting locally produced, high-quality, value-added products,” he said.

The government sees such initiatives as a blueprint for broader economic transformation.

Beyond macadamia and avocado, Kenya is also promoting the cultivation of oil crops such as sunflower and soybean to support domestic edible oil production. Experts say scaling up these crops could significantly cut the import bill while increasing farmer incomes and strengthening food security.

However, the transition to an agro-industrial economy is not without challenges.

Industry stakeholders point to high production costs, limited processing infrastructure, and post-harvest losses as key barriers to scaling value addition across the country. Additionally, smallholder farmers, who form the backbone of Kenya’s agricultural sector, may struggle to access the capital and technology needed to participate fully in the new value chains.

There are also concerns about whether production levels can keep pace with expanding international market access, especially as the government continues to negotiate trade agreements.

“As we open up international markets, we must ensure we have enough produce to meet demand,” Kinyanjui cautioned.

Despite these hurdles, the government remains optimistic that agro-processing will play a central role in driving economic growth, job creation, and export expansion.

The broader goal is clear: to reposition Kenya from a supplier of raw agricultural commodities to a global player in value-added agribusiness.

If successful, the shift could redefine the country’s economic trajectory, turning farms into factories and transforming agriculture from a subsistence activity into a high-value industrial sector.

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