Kenya looks to Malaysia for palm oil sector reform

Kenyan industry players are turning to Malaysia’s palm oil model for guidance on logistics, supply chain efficiency and supportive policy frameworks.

This follows a roundtable in Nairobi with Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani, involving 15 key stakeholders from Kenya’s oils and fats industry.

During the dialogue, Johari shared Malaysia’s experience as a global leader in the agricommodity sector, not only as a top palm oil producer and exporter, but also as an importer of other commodities such as cocoa.

He emphasised the importance of an integrated approach to industry development, which includes infrastructure, fiscal policies and long-term planning.

“One of the most pressing issues raised was the high cost of logistics in the region, which can increase the price of palm-based products by up to 40 per cent due to lengthy transport times to landlocked countries within East Africa,” Johari said in a statement.

“Kenyan industry players are importing Malaysian palm oil, processing it locally, and selling to the regional market, but logistics inefficiencies are driving up consumer prices.”

To address the challenge, Johari said Malaysia is open to collaboration on infrastructural solutions and technical support to reduce cost burdens and enhance distribution.

“If we can find the right solution, this sector holds great potential. I’ve extended an invitation to Kenyan stakeholders to visit Malaysia and study our palm oil processing ecosystem firsthand,” he said.

“This knowledge-sharing can help increase productivity and efficiency within Kenya’s domestic industry.”

The visit forms part of Malaysia’s broader push to promote trade, innovation and technical cooperation across borders, especially in emerging markets with strong growth potential.

Tags: Kenya, Malaysia, palm oil