POINTERS: Kenya, the Palm Oil Hub for the East Africa

By: Rajul Malde

Rajul is an accomplished business leader with over 20 years of experience working in the FMCG sector in East Africa. He acquired his Bachelor of Science in System Science from the City, University of London and currently hold various company directorships in Kenya. An experienced professional in sales and marketing, route to market development, strategy formulation, acquisitions, and talent development, Rajul is also currently the Director in charge of Sales and Marketing at Pwani Oil Products Limited, the biggest manufacturer of edible oils/fats and home personal care products in Kenya.

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The oil and fat industry of Kenya is actively developing. This presentation will present data on the dynamics of the Kenyan market and feature demand for palm oil and import supply in Kenya, current challenges, and opportunities.

Kenya produces less than 5% of its edible oils & fats requirements making it a net importer of vegetable oil to cater for the deficit. Kenya is a major consumer of palm oil in Sub-Saharan Africa mostly used for edible oils & soaps. Due to the demand vs local production deficit, Kenya imports most of its edible oil requirement.

My research and analysis conclude that Kenya’s demand of edible oils continues upwards as the population of 56M continues to grow at an average rate of 2% local production will still not be able to match demand and the weakening of the Kenya Shilling will affect price and demand as illustrated in my analysis.

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Questions & Answers (4) :

WONG YQ

1 year ago

Dear Mr. Rajul, Thank you for the presentation. Any idea the neighbouring countries, West and South Africa, do they supply Palm oil to eastern? Or any limitation for these region? Fatty alcohol derivatives will be mainly for the cosmetic and personal care market? Any latest trend of these market development? Thank you

WONG YQ

1 year ago

Desmond Ng

1 year ago

Dear Mr Malde, thanks for sharing your knowledge with regards to the Kenyan palm oil market. I have 2 questions which I wish to seek your further clarification: 1. On palm oil market opportunities in Kenya, which you highlighted that oleochemical industry in not developed. May I know what oleochemicals products offer the biggest market potential in Kenya? 2. Can you share more on how the negative perception on palm oil come about in Kenya? Thank you.

Rajul Malde:
Dear Mr. Desmond, The opportunity in the Oleo Chemical Industry is mainly in the hydrogenation and Fatty Alcohol production of Palm and its derivatives. The negative perception of palm is mainly from its nature of Palm Olein solidifying and thus creating an impression in the minds of the consumer of having cholestrol as the literacy levels in this part of the World is quite low.
1 year ago

George Teh

1 year ago

Mr Malde Is the negative perception about palm oil articulated in your slide #9 sufficiently serious to warrant counter-propaganda initiatives? I suspect the anti-palm oil propaganda is funded and orchestrated by other edible oil interest groups/countries masqueraded as impartial NGOs? Kindly shed some light. Thank you.

Rajul Malde:
The issue i have raised is not related to the propaganda but more about lack of literacy and understanding that Palm Oil does solidify in colder temperatures and thus creates an impression in the minds of the naive consumers that it is unhealthy. To add to that, no real Palm Oil characteristics marketing has happened in this part of the World and so people believe that soft oils are better and more healthy
1 year ago