Indonesia offers to help Kenya boost palm oil production

Indonesia has offered to assist Kenya to improve the production of palm and sunflower oil, the Ministry of Investments, Trade and Industry has announced.

A delegation from the Asian nation, the world’s largest producer of palm oil, is expected in Nairobi next week for discussions with President William Ruto and Cabinet Secretaries Moses Kuria (Investments, Trade and Industry) and Mithika Linturi (Agriculture).

An agreement for end-to-end development of the edible oil industry will be signed during the meetings.

“The talks will be centred around supporting farmers in selected counties of Lamu, Kwale, Tana River, Taita Taveta, Homa Bay, Migori, Kisumu and Busia through an out-grower scheme as well large-scale farming,” the ministry said.

The Indonesian delegation will be led by Coordinating Minister for Maritime and Investment Affairs Luhut Binsar Pandjaitan who coordinates seven ministries in President Joko Widodo’s government.

It will be the second time in six months that Pandjaitan is visiting Kenya after talks with Ruto in January.

Pandjaitan visit is expected to prepare the ground for a State Visit by the Indonesian President in August.

The delegation will include government and private companies keen to invest in other sectors including blue economy, mining, livestock, apparel and textiles, geothermal energy, petroleum, sugar and pharmaceutical.

Ruto despatched Kuria who led a reciprocal senior government delegation to Jakarta in May.

During Kuria’s visit, Indonesia offered to import 700,000 cows from Kenya.

Kenya currently imports crude palm oil worth Sh140 billion annually through five companies of Bidco, Kapa Oil, Pwani Oil, Menengai and Golden Africa, the ministry said.

Last December, there was an outcry from consumers when the prices of edible oil hit Sh480 per litre.

The government was forced to import edible oil through the Kenya National Trading Corporation to reduce the retail price.

Indonesia is the world’s 15th largest economy with a population of 300 million people and a GDP 18 times the size of Kenya.

A member of G20, Indonesia is the world’s largest producer of nickel.

Tags: Kenya, agreement, edible oil industry, sunflower oil, Indonesia, Production, palm oil