The Kenyan edible oil industry has significant potential to enhance food security, economic growth, and farmer livelihoods. This project aims to establish a complete edible oil value chain, from primary production to a modern processing plant, utilizing locally grown crops. The proposed facility will have an initial capacity of 85,000 metric tonnes annually, prioritizing oil palm and sunflower before expanding to other crops such as soybeans, rapeseed, and peanuts. The processing plant will incorporate advanced technology to maximize oil yield and minimize waste, ensuring efficiency and sustainability. Homa Bay County has identified 767,851 acres suitable for oil palm cultivation, with farmers already committing 34,250 acres for oil palm and sunflower production through out-grower schemes. The county government seeks an investor to establish a 15,000-hectare nucleus farm alongside the processing facility, requiring a capital investment of approximately USD 27.534 million. The venture is expected to break even by the third year. Sunflower farming will be implemented countywide, while oil palm will be concentrated in Suba North, Suba South, and Ndhiwa sub-counties. The project aims to contribute 30% of Kenya's edible oil deficit within three years, producing 246,000 metric tonnes in the medium term and matching current national output by the fourth year. Kenya’s edible oil market generated USD 0.54 billion in 2023, with projections reaching USD 0.95 billion by 2028. The country currently produces only 80,000 metric tonnes annually against a demand of over 900,000 metric tonnes, resulting in a 91% production deficit. Homa Bay County's contribution will help bridge this gap and reduce reliance on imports. The project is expected to boost rural development, create jobs, and generate tax revenue while promoting food security, nutritional benefits, and sustainable farming practices. Financial projections indicate strong revenue generation and profitability within three years, making this a viable and impactful investment opportunity.

Agriculture

Agriculture

Equity Investment

27534000

USD

Startup

The County Government has conducted public participation forums to sensitize farmers on the promotion of oil palm value chains in the county. Consequently this, farmers have embraced the idea and committed 34, 250 acres for both oil palm and sunflower of their farms as out growers. The sensitization forums are still ongoing with a projection of meeting the target within a span of three (3) years.

Homa bay County