The Lamu palm oil plant is advancing toward final investment discussions as Kenya seeks to expand domestic palm oil production and processing. The proposed Ksh12.9 billion ($100 million) project will target Witu Nyangoro Ranch in Lamu County. Moreover, the investment could create about 3,000 jobs while strengthening Kenya’s agricultural processing capacity.
Investment Promotion Principal Secretary Abubakar Hassan said discussions on the project are in their final stages. He made the remarks during a stakeholder meeting on August 10, 2026.
The project responds to Kenya’s heavy dependence on imported palm oil. The country currently spends about $1 billion annually on palm oil imports.
Therefore, the proposed facility could help retain more value within Kenya’s agricultural and manufacturing sectors.
Lamu Palm Oil Plant Targets Domestic Processing
The Lamu palm oil plant will focus on establishing local processing capacity within Kenya’s edible oils industry. The development could support farmers, processors, transporters and other agricultural service providers.
Furthermore, local processing could strengthen connections between primary production and downstream manufacturing. These connections could support food processors, cooking oil manufacturers and consumer goods producers.
Kenya currently relies heavily on imported palm oil to meet domestic demand. This dependence increases pressure on foreign exchange reserves and limits opportunities for local value addition.
Consequently, the proposed investment offers a potential route toward reducing import dependence. It could also support the development of a broader domestic palm oil value chain.
However, authorities have not yet disclosed the plant’s processing capacity. They have also not announced the construction schedule or completion date.
The government has identified Witu Nyangoro Ranch as the proposed project location. Further project development will therefore depend on investment discussions and subsequent approvals.
The proposed Lamu palm oil plant forms part of Kenya’s broader push to attract large-scale industrial investments. Previously, Dangote Cement outlined plans to establish a cement manufacturing operation in Kenya, reflecting the country’s growing appeal for major private-sector developments. The Dangote Cement venture into Kenya also highlights the government’s efforts to expand local manufacturing and reduce dependence on imports.
Lamu Palm Oil Plant Could Expand Agro-Industrial Activity
The Lamu palm oil plant could introduce a major agro-processing facility into the county’s developing investment landscape. The project could generate demand for logistics, storage, agricultural inputs and industrial services.
Additionally, approximately 3,000 jobs could emerge from the investment, according to the Investment Promotion Principal Secretary.
Those opportunities could extend beyond direct employment at the processing facility. Farming, transportation, equipment supply and maintenance could also benefit from increased activity.
The project could therefore create an integrated agricultural and industrial ecosystem around palm oil production. Such an ecosystem would require reliable transport, storage infrastructure, utilities and supporting commercial services.
Meanwhile, government officials are positioning Lamu as a potential location for large-scale investment. The palm oil development could contribute to that strategy through agricultural processing.
Importantly, the project remains at the planning and investment-finalization stage. No construction contractor, engineering consultant or equipment supplier has been publicly identified.
The government must still complete investment arrangements before construction activities can proceed. Regulatory approvals and detailed technical planning will also determine the project’s eventual delivery program.
The investment nevertheless represents a significant proposed addition to Kenya’s agro-processing infrastructure. Its successful implementation could support domestic production while reducing reliance on imported palm oil.
Also read: AriseIIP Investment in Kenya: $3 Billion UAE-Backed Plan Triggers Nationwide Construction Drive
Project Fact Sheet
Name: Lamu Palm Oil Processing Plant
Type: Palm oil processing and agro-industrial development
Location: Witu Nyangoro Ranch, Lamu County, Kenya
Estimated investment: Ksh12.9 billion
Current status: Investment discussions nearing finalization
Proposed facility: Palm oil processing plant
Primary objective: Expand domestic palm oil production and processing
Strategic objective: Reduce Kenya’s dependence on imported palm oil
Expected employment: About 3,000 jobs
Expected economic impact: Increased agricultural value addition and industrial activity
Project Team
Project sponsor: Government of Kenya
Lead government official: Abubakar Hassan, Principal Secretary for Investment Promotion
Government department: State Department for Investment Promotion
National government role: Investment facilitation and project coordination
Leave a Reply