The palm oil processing industry in Kenya has shown a strong growth trend from 2014 to 2023, reaching 355,000 metric tons in 2023. The most notable year-on-year increase occurred in 2017 with a 150.38% growth, while there was a significant decline of 13.72% in 2018. From 2019 to 2023, the industry experienced stable growth, with year-on-year variations averaging around 4-5%. The compound annual growth rate (CAGR) over the past five years stands at 4.64%, indicating a robust upward trajectory despite some fluctuations.
Looking ahead, forecasts from 2024 to 2028 suggest continued expansion, although at a slightly slower CAGR of 2.63%. By 2028, the annual output is expected to hit 419,000 metric tons, reflecting a 13.86% growth from 2023 levels.
Future trends to watch for:
- Technological advancements in processing methods enhancing efficiency.
- Government policies impacting production and export capabilities.
- Shifts in global palm oil demand affecting local market dynamics.
- Potential environmental regulations influencing sustainable practices.
