A new palm oil initiative planned for Witu Nyangoro Ranch in Lamu County is set to create approximately 3,000 jobs and boost local production, according to government officials.
The project, valued at Sh12.9 billion (around $100 million), aims to cultivate and process palm oil, addressing Kenya's heavy dependence on imported palm oil, which costs the country about $1 billion annually. This import bill is second only to petroleum.
Investment Promotion Principal Secretary Abubakar Hassan confirmed that negotiations for the project are nearing completion. He emphasized the economic importance of reducing reliance on imports, which exposes Kenyan businesses and consumers to international price volatility and supply chain disruptions.
The palm oil produced will serve multiple sectors, including cooking oil, processed foods, soaps, detergents, and cosmetics, making it a vital commodity domestically.
Economic and Regional Impact
- The project will create direct employment opportunities within the palm oil farm and processing facilities.
- Ancillary sectors such as farming, transportation, and processing are also expected to benefit.
- Local businesses supplying goods and services to the industry stand to gain from increased activity.
Lamu Governor Fahim Twaha has welcomed the investment, which complements other major developments in the county, including the Dangote Group’s planned refinery and the LAPSSET corridor infrastructure project.
While the project promises significant economic benefits, details on production capacity, recruitment processes, wage levels, and local ownership remain undisclosed as negotiations continue.
