The oil industry in Kenya is relatively new, particularly in terms of exploration and mining. British firm Tullow Oil first discovered oil in the country in 2012. The commercial viability of the oil discovered remains unclear. As a result, the country’s oil market is primarily controlled through importation and refining.
Sunflower oil
Sunflower oil is a highly profitable and popular business in Kenya. In recent years, the country has seen an increase in sunflower seed production and the market is expanding fast. Sunflowers are one of the fastest growing crops in the world, and their short growing season allows farmers to plant their crops up to four times a year, making the Kenyan sunflower oil market a lucrative one.
In 2014, Kenya’s Sunflower Oil Production jumped 3.1% year-on-year. However, the country still faces the problem of a limited supply and is therefore a net importer of vegetable oils. Fortunately, the Kenyan government is trying to reduce the import bill, and has started to tax imported raw materials.
Coconut oil
Kenya is an important exporter of coconut oil. Its exports increased 110% in 2016 and 86% in 2017 as compared to the previous year. In 2019, the country bought 139 tonnes of coconut oil. In addition, the country is a net importer of coconut oil. The country’s coconut oil production has increased as well.
The value of the Kenyan coconut oil market is estimated to reach $X by 2021. It is projected to grow at a CAGR of 8.39% during this period. This growth is due to the increasing demand for the product in the region.
Olive oil
According to Euromonitor International, the Olive oil market in Kenya is expected to reach Kshs.25billion by 2023. Health and wellness concerns are driving the growth of this market. Olive oil is sold in Kenya in 500ml, 750ml, and 1000ml bottles in major retail stores.
The country is a net exporter of olive oil. In 2019, Kenya bought 784 tonnes of olive oil. Moreover, the value of olive oil exports in Kenya has increased by 190%.
Rapeseed oil
The Rapeseed oil market in Kenya is divided into different segments based on the distribution channels. These include direct sales, hypermarkets, convenience stores, and specialty retail stores. In addition, the market is segmented based on geography. The market is projected to grow in the coming years due to the growth of online retailers.
Rapeseed oil is used in many applications, from cooking to personal care products. Researchers are experimenting with new products and finding ways to make better use of the oil. The market for rapeseed oil is expected to grow by more than six percent during the period between 2017 and 2031. Additionally, rapeseed oil can be used to fuel agricultural and forestry machinery. In addition to its diverse uses, rapeseed oil is a healthy whole oil that is a healthy choice for daily consumption.
Palm oil
Despite producing 34% of the country’s total oil requirements, Kenya remains a net importer of palm oil. Its requirement is estimated at 600,000 metric tons and KES 54 billion, with 95 percent of that amount coming from palm oil imported from South-East Asian countries. The high import bill is offset by a drain on foreign exchange.
There is currently a huge gap between the country’s needs and the available supply in the market. With only one third of its needs met, Kenya is looking to attract potential investors to help close this gap. The Western region of Kenya has a high unemployment rate and an abundant supply of available labor.
Sesame oil
The sesame oil market in Kenya has experienced a sharp decrease in the past few years. In the first quarter of 2021, the volume of sesame oil exports fell by more than X%, to $X. From the previous year, the market had reached a high of $X, but has been declining since then. This report provides the latest data on production and trade trends. It also includes a forecast through 2025.
The market in Kenya is heavily dependent on imports from China and India. In 2016, China accounted for over 80% of sesame oil exports to Kenya. Other major sesame oil exporters to Kenya include the U.S., Australia, Japan, and Vietnam. In addition to China, India, and Japan accounted for more than 20% of the total export value in Kenya.
Palm kernel oil
The palm kernel oil market in Kenya has a huge potential. While Kenya currently only supplies a third of the world’s demand for palm oil, there are plenty of opportunities for investors who want to tap into the Kenyan market. One of the main reasons for this is that most of the Kenyan population lives in the Western region, where there is a high unemployment rate and plenty of available labor.
The palm kernel oil market in Kenya is expected to grow significantly in the next few years. The country has an expanding food industry, which will drive the demand for palm kernel oil.
