By Alloys Musyoka
The government has prioritized coconut value addition in the coastal region to unlock new markets, raise farmer incomes, and create industrial jobs for the youth, Principal Secretary for Investment Promotion Abubakar Hassan Abubakar has said.
Speaking during a visit to the Kentaste coconut processing factory in Mvindeni, Kwale County, the PS said Kenya’s expanding market access gives local manufacturers duty-free and quota-free entry into major markets, including East Africa, Africa, the United States, the United Kingdom, the European Union, and China.
He noted that as the government opens new markets, the focus must shift to producing competitive goods that can access those opportunities, identifying coconut as a strategic crop for the Coast.
Kenya has more than 100,000 coconut farmers, with 95 per cent based in the coastal region, and an estimated 10 million coconut trees producing an average of 30 coconuts per tree annually. This translates to about 300 million coconuts each year.
Despite this strong supply base, farmers have struggled due to the lack of reliable buyers and limited processing capacity, leading to low returns. The PS said the Ministry of Investments, Trade and Industry has therefore prioritized the coconut value chain and is working with large processors such as Kentaste to scale up operations and absorb farmer produce.
“We want farmers to know there is now a ready market for their coconuts. With expanded processing, we can add value, create jobs, and ensure farmers earn better incomes,” he said.
Abubakar commended the Kwale County Government for providing an enabling business environment that has attracted investors, noting that county-level support plays a critical role in industrial growth.
He also highlighted government incentive programmes under the Special Economic Zones Authority and the Export Processing Zones Authority, which offer tax incentives and reduced regulatory burdens to help manufacturers lower production costs and compete locally and internationally.
Under the export processing zone programme, firms focused on exports enjoy significant tax relief, while special economic zones support both domestic and export-oriented production. The PS said government teams are sensitizing manufacturers to fully utilize these programmes.
On business risks, Abubakar identified market access, regulation, and taxation as key challenges, noting that the government is addressing them through market diversification, streamlined county licensing following the enactment of the County Licensing Uniform Procedures Act, and targeted tax incentives.
Kentaste Chief Executive Officer Kyle Denning said the company has operated in the coconut sector for over a decade and has steadily expanded its sourcing and processing capacity.
“We started by sourcing about 5,000 coconuts a day. Today, we source close to 1.5 million coconuts a month from smallholder farmers in Kwale, Lamu, and other regions,” Denning said.
He said Kentaste produces a wide range of coconut products, including virgin coconut oil, coconut milk, cream, chips, water, flour, and desiccated coconut, which are available in supermarkets across the country.
Denning said partnerships with government agencies and counties are key to sustaining growth, adding that the company is expanding operations into Lamu and Kilifi counties in collaboration with local governments.
The factory employs nearly 300 full-time workers in Kwale and supports hundreds more indirectly along the value chain. The company estimates that its upstream activities support more than 50,000 livelihoods daily.
The PS said value addition activities, from de-husking and deshelling to processing into finished products, create multiple employment opportunities and align with the government’s industrialization agenda.
He noted that industrial jobs form one of the four pillars of the President’s youth employment strategy, alongside labour mobility, digital jobs, and affordable housing.
The Kwale County Government trade executive committee member Michael Mutua said the county is supporting farmers through the provision of free hybrid coconut seedlings to replace ageing trees and increase production. The initiative is implemented through the Department of Agriculture to boost yields and secure the raw material base for processors.
Special Economic Zones Authority Chief Executive Officer Dr.Kenneth Chelule said the government is intensifying efforts to attract and support investors to sustain industrial growth and address youth unemployment.
He said there are nine special economic zones planned along the Coast from Kwale to Lamu, most of them at various stages of development, alongside several export processing zones.
Chelule said such programmes offer incentives that lower operating costs and free up capital for investment in equipment, jobs, and expanded production, citing global examples where similar models have driven industrial growth.
He said coconut processing firms such as Kentaste are strong candidates for support under the special economic zones framework to help them scale up and compete globally.
