UNLEASHING THE

COCONUT SECTOR IN
KENYA
ABBREVIATIONS
ABD Agricultural Business Development
ASL Above Sea Level
ASPS Agricultural Sector Program Support
BDS Business Development Services
CBO Community Based Organisations
CSR Corporate Social Responsibility
DANIDA Danish International Development Agency
FAO Food and Agriculture Organiation
FBO Faith Based Organisations
GDP !ross Domestic Product
ISO International Organiation "or Standardiation
KARI #enya Agricultural Research Institute
KCDA #enya Coconut Development Authority
KEBS #enya Bureau o" Standards
KEPHIS #enya Plant $ealth Inspectorate Services
KIRDI #enya Industrial Research and Development Institute
KRA #enya Revenue Authority
KES #enya Shillings
NACADA %ational Authority "or Campaign against Alcohol and Drug
Abuse
NGO %on&governmental Organisation
ROSCA Rotating Savings and Credit Association
SACCO Savings and Credit Cooperative Society
VCO 'irgin Coconut Oil
Summary
(he origins o" the coconut palm scienti)cally *no+n as Cocos nucifera can be
traced to ,alaysia- Indonesia- (hailand- 'ietnam and Philippines. It has since
spread to most tropical and subtropical areas through ocean currents and
e/plorers and is currently "ound in over 01 countries mainly in A"rica- America and
Asia. In #enya it is almost e/clusively "ound in the coastal regions even though
other regions are *no+n to have varying potential "or suitability o" coconut
"arming.
The commercialization of coconut and coconut products has become important in Kenya due to the
exceptional role this crop is expected to play in increasing farmer incomes and improving livelihoods at
the coastal region and other production areas. This role is in line with the countrys
Vision 2030 and the second Medium Term Plan (2013-2017) which includes the Agri-Business
Development Programme to strengthen agricultural value chains and ensure the creation of local,
regional and international marketing opportunities for agricultural commodities. It is envisioned that the
commercialization of coconut production and processing will contribute towards the realization of the
countrys industrialization agenda, to increased job creation, especially for the youth, to higher rural
incomes and greater food security, and to the creation of a vibrant agro-processing sector and
diversification of exports.
Although coconut is not one of the priority value chains of Agricultural Sector Development Strategy
(ASDS), it currently contributes 1.5% of the agricultural GDP or 0.4% of the national GDP (KES 12.6
billion) and has the potential to contribute KES 25 billion annually. Currently, less than 25 percent of
the coconut subsector potential is exploited. The subsector is mainly constrained by lack of a clear legal
and institutional framework, very low national research priority, poor funding situation, uncoordinated
market actors, absence of value addition, and general lack of prioritization. There is therefore need for a
Master Plan that will steer the realization of the full potential of the coconut industry and enhance the
contribution of the subsector to the national gross domestic product.
(he coconut tree is recognied as an industrial crop in #enya contributing over
2.03 o" the agricultural !DP and 1.43 o" the national !DP. (he sub&sector is
estimated to support over 211-254 "armers and provides income to many actors in
the chain including seedling "armers- harvesters- de&hus*ers- +ine tappers-
traders- transporters and processors among others. $o+ever- the industry "aces
challenges in managing statistics +hich leaves a lot o" transactions unaccounted
"or.
(he coconut palm 6Cocos nucifera7 is mostly "ound in the #enyan coastal region
due to the availability o" its speci)c agro&climatic re8uirements and the adoption o"
subsistence agricultural practices that support coconut gro+ing. $o+ever- it is
highly adaptable to a variety o" environments o" up to 911m 6ASL7 but limited in
terms o" commercial orientation in #enya. Climatic conditions are a crucial "actor
to be considered +hen establishing plantations in ne+ regions that have
previously not had coconut because its productivity is highly dependent on agro
ecological and climatic conditions. (he agronomic assessments conducted to
identi"y other areas outside the coast that have potential to support coconut
production +ere classi)ed as moderately suitable and marginally suitable. (he
moderately suitable area is appro/imately 0-:;:.:; hectares and spans mainly
"rom the <estern #enya regions o" Butere ,umias- Bungoma- #a*amega- #ericho-
#isumu- %andi- Suba and 'ihiga +hile the marginally suitable area is
appro/imately 20:-9;9.449 hectares spread in various districts
=
o" the "ormer
>astern- Central- Ri"t valley- %yana and <estern provinces.
These counties (Kwale, Mombasa, Kilifi, Taita Taveta, Tana River and Lamu) cover about 14% of the
countrys total landmass and host about 3.3 million people or 8% of the countrys population (Gok,
2010). Two of these counties (Tana River and Lamu) are classified as arid and three as semi-arid. The
primary policy challenge in coastal region is to ensure food and nutrition security in a sustainable
manner in environments that are prone to drought, where peoples access to and control over critical
livelihood resources such as land is insecure, and where climate change increases unpredictability.
(he total number o" coconut trees in the country stands at 9,907,115 on a total
land sie o" 4;9-9;4 acres 6 2:9-955 $a7 +hich represents ?ust a 8uarter o" the
land potentially available "or coconut gro+ing. #+ale County holds the highest
number o" coconut trees +ith 4-:24-20: trees "ollo+ed closely by #ili) County +ith
4-25=-5@; trees. Other counties barely account "or a tenth o" the total coconut tree
population +ith ;50 coconut trees are being planted on annual basis. (his study
"ound that coconut "arming is largely in the hands o" the older generation +ith
most "armers aged above 01 years +ith a heavy domination by men +hose
average literacy levels are upto basic 6primary7 education.
Coconut "armers in #enya generally lag behind in husbandry and agronomic
practices- adoption o" ne+ "arming technologies and conse8uently production. (he
cropAs potential is generally une/ploited not necessarily due to lac* o" attention by
the "armers but mostly as a result o" limited support by the agencies that ought to
provide technical in"ormation on good agricultural practices especially at the
production level. Poor yields are partly due to "armersA lac* o" technical *no+&ho+
on crucial agronomic practices and limited adoption o" technologies as
demonstrated in this study. Coconut "arming in #enya is also "aced by the
challenges o" less than ade8uate rain"all- insect pests and lac* o" clean 8uality
seedlings.
Six interrelated coconut value chains that require different interventions at different stages. These are: 1)
whole coconut; 2) desiccated coconut, coconut water and related products; 3) coconut by-products; 4)
coconut oil; 5) coconut (palm) wine and related products; and 6) coconut wood and leaves value chains.
(he processing aspect o" the coconut industry is highly "ragmented- small in scale
and highly in"ormal compared to other agricultural sub&sectors ma*ing traceability
and valuation o" processed products diBcult. (his is complicated "urther by the
high number o" products +hich can be derived "rom the coconut tree and the
unavailability and inaccuracy o" data given "or the volumes o" ra+ materials
utilied and )nal output o" the processed products. (he current production
capacity hardly meets the mar*et demand. During the survey- it +as observed
that some o" the processors intervie+ed had closed temporarily due to scarcity
and high cost o" ra+ materials.
(he coconut palm has multiple uses both as a cash and "ood crop noting that all
parts o" a coconut are commercially e/ploitable. In addition- it creates numerous
employment opportunities across the value chain. (he roots can be used "or dye
and medicinal purposes- the stemCtrun* "or timber used "or "uel- construction and
"urniture. Coconut inDorescence is used to produce toddy +hich +hen "ermented is
used as an alcoholic drin*. (he "ruit is used as "ood and is also processed into
many products such as copra- copra oil- virgin coconut oil- desiccated coconut-
coconut mil*- coconut cream and many more.
(he coconut hus* produces )bre +hich is used "or ma*ing ropes- door mats and
rugs. It also yields coco peat +hich has various agricultural uses especially in
horticulture. (he shell produces charcoal- handicra"ts and activated carbon. (he
leaves are used "or ma*ing roo)ng materials and brooms.
(he coconut census conducted by ABD&DA%IDACCDA in =119 sho+s that there
+ere :.4 million coconut trees distributed across the coast region. (his current
6=12;7 Coconut Survey also see*s to establish the total number o" trees albeit
using a diEerent methodology. (his section presents in"ormation on sie and
magnitude o" the coconut production across "our diEerent parameters namelyF
the population and the characteristics o" the trees- number o" "armers- sie o"
land under production and the nature o" o+nership
(he total number o" coconut trees in the country stand at 9,907,115 (01!
"#"#$u% &ur'(y r()#r%*. (he trees are ho+ever concentrated in t+o counties.
#+ale County has the highest population +ith 4-:24-20: trees "ollo+ed closely by
#ili) +ith 4-25=-5@; trees. Other counties barely account "or a tenth o" the total
population.
On average- 2:3 o" the total population o" coconut trees are aged over 92 years
thus classi)ed in terms o" production capacity as senile. On the other hand-
young trees be"ore the bearing age 61&07 constitute :3 o" the trees +hile those
aged 9G=1 years account "or 2:3. (he largest proportion o" trees are in the age
category o" =2G41 and 42G91 years accounting "or =03 and =43 o" the o" total
coconut tree population respectively.
(he value chain approach involves a consideration o" all players involved "rom
product conception to consumption. According to Barnes- 6=1147 value chain is an
alliance o" enterprises collaborating vertically to achieve a more re+arding
position in the mar*et. As in any system- the sum o" the parts is greater than the
+hole due to synergy. A value chain comprises o" chain actors 6involved in
"ormation- trans"ormation and distribution o" the product7 and service providers
and supporters +ho "acilitate the chain. ,a?or value chain activities include input
supply- production- transportation- processing and mar*eting as +ell as eventual
consumption.
(he coconut value chain is complicated by the multiplicity o" product value chains
involved. In the #enyan case there is a general lac* o" industry statistics necessary
"or analysis. Despite being a *ey cash crop in the coastal region the coconut hardly
"eatures in national statistics. (his reportAs approach considers generic agricultural
value chain +ith broad categories o" *ey players namelyF input suppliers- "armers-
processors- traders and chain "acilitators.
+, F-$.-$/& a$. A$a0y&-&
4.2.1 Volume and Value of Coconut Products
(he coconut tree has many products both at the "arm level and at the processing
level. From the root to the leaves there is no part o" a coconut tree +hich cannot
be commercially e/ploited. (he main products produced at the "arm level include
mature nuts- immature nuts- palm +ine- coconut thatch- brooms and coco +ood.
Some by&products o" the nuts namely )bre and hus*s are also commercially
e/ploited by some "armers.
Some o" the semi&processed products produced include desiccated coconut- copra-
copra oil and coco timber. (hese are processed both by "armers and in established
"actories. (hese products can be "urther processed to yield other consumer
products.
As the South Seas proverb goes He who plants a coconut tree, plants food and drink, vessels and
clothing, a habitation for himself and a heritage for his children
Fully processed coconut products in the #enyan coconut industry include the
"ollo+ingH
'irgin coconut oil 6'CO7- Coconut mil* 6cream and light7- Bottled palm +ine-
Coconut vinegar- Brooms- Shell charcoal- Coco&+ood Furniture- ,a*uti- Coco&peat-
Coir )bre and ropes- Door mats- Body lotion and cream- Soap- Lamp shades and
Arte"acts.
5
6.4.2 Desiccated coconut coconut !ate" and "e#ated $"oducts %a#ue c&ain
This value chain consists of two key lines of products: fresh immature nut harvested for its tender
coconut water, and fresh mature coconut for desiccated, coconut cream, milk, powder, flakes and other
related products (Figure 6.4). All these are products are used as traditional fresh foods and drinks in the
local market.
Cu""ent Situation
The importance of tender coconut water has greatly increased and soon will surpass its normal
traditional demand. The coconut water has lately, albeit at a slow rate, found its way into formal
markets at the coast and has the potential to grow into a big soft drinks industry. The water is currently
being served in big tourist hotels as well as in local pubs and along the streets. To-date approximately
23.7 million nuts are used for the production of tender coconut water up from 18 million nuts in 2008.
Currently the prices of immature (green and tender) coconut are much higher than the prices of fresh
mature coconut (Figure 6.4). This difference is occasioned by the relatively higher farm costs of
harvesting immature coconuts. Supply of the immature coconuts is limited due to the high demand.
Further, the need for convenient drinking places and increased demand in urban centres and non-
coconut growing counties is creating a local niche market for processed and packaged coconut water.
However, since the tender coconut water is highly perishable, its quality quickly deteriorates with time.
Thus there is need for investments in pasteurization
5
and refrigeration as the market expands. At the
moment no pasteurization of tender coconut water is being in the country. There is also no well
packaged or refrigerated water for export.
Local production of the confectionery products has stagnated at about 9.2 tonnes annually. Kentaste,
located in Kaloleni is one of the local processors of desiccated coconut, coconut milk,
5
Coconut water flavour is very sensitive to heat, so ordinary pasteurization may not be applied without changing the
quality.
cream and coconut shell powder. House of Manji, one of the largest confectionery factories in the
country, uses coconut products in most of its products such as assorted delicious cream biscuits and
chocolate coated biscuits. The company imports nearly 15 tonnes of desiccated coconut per month from
Far East. These are used in its Nairobi and Kampala plants.
Most of the processed products of this value chain are imported. For instance, the country in 2012
imported 85,100 kg of desiccated coconut against exports amounting to 9,177 kg. The volumes of
imports and exports of coconut milk were 22,522 kg and 25 kg respectively (KCDA, 2013).
The current production of coconut water, flour, shredded, powder, milk, cream and desiccated coconut
products from fresh coconut will be scaled up from small production to medium and large production
with a target of generating current import volumes by 2018 (Table 6.2). Most of the current home based
processors, mainly dealing with simple coconut products such as coconut milk, coconut water, coconut
charcoal, shells and coconut cream, and medium scale processors of products such as coconut milk,
desiccated coconut, flour and powder will be capacitated to form small cottage industries by 2016. This
industrial process will involve medium and large scale processing of these coconut products using
highly hygienic methods that promote quality. The methods will be adapted from the Philippines,
Indonesia and India.
Production
To support processing of coconut water, milk, coconut charcoal, shells and coconut cream, desiccated
coconut, flour, powder, etc., production of nuts will have to increase by a higher rate than that of
producing processed products. The expected increase in processed coconut will eventually create higher
producer prices which will in turn acts as an incentive for increased coconut production.
Ta'#e 6.2( )uantities *K+, o- ."ocessed ."oducts E/$ected to 'e ."oduced *201422013,
Coconut $"ocessed
$"oducts 2014 2014 2016 2015 2013
Coconut cream
1,617 2,021 4,042 6,063 8,084
Coconut cream powder
539 673 1,347 2,020 2,693
Coconut milk
4,510 5,638 11,276 16,914 22,552
Coconut milk powder
1,741 2,176 4,352 6,527 8,703
Desiccated coconut
17,020 21,275 42,550 63,825 85,100
Nata-de-coco
6,688 8,360 16,721 25,081 33,441
Figures of 2018 are the current import volumes (see KCDA, 2013)
Source: Own Estimation
Processing
Processing of coconut milk, coconut water, coconut charcoal, shells, coconut cream, coconut milk,
desiccated coconut, flour and powder will be scaled up to produce amounts indicated in Table 6.2.
Coconut de-huskers, de-shelling and sterilizers, dryers, coolers, boilers, grading and packaging
machines, etc. have to be accessed by processors. As most of these machineries have to be imported,
public-private partnerships will be crucial in capacitating the processors.
Marketing channels and distribution
Local, regional and export markets will be targeted for the sale of these products. Local markets will
include those at the Coast region, Rift valley, Eastern, Western, Nairobi and North Eastern regions. Te
expand the markets, export trade shows of these coconut products will be held in important trading
blocks such as USA and Canada, European Union and Sub-Saharan Africa, among others. Market
surveys will be done to provide market information on emerging markets. Sellers and consumers will be
informed on the availability of the products through market promotion campaigns.
Value chain enablement
Research on the nutritional contents and other aspects of the processed products will be done in order to
advise consumers accordingly. Higher yielding coconut varieties will also be introduced to farmers in
order to sustain increased production of processed milk, powder cream and other products. Educational
workshops to create awareness on nutritional value of processed products and availability of the same in
the market will be done. Standards of these coconut products will be developed and awareness created
among consumers and retailers in local, regional and international markets.
Value chain support
Credit services will be provided to ensure that actors have adequate funds to exploit coconut potential.
Other support services will include training of actors on production skills, processing and packaging of
the processed coconut products. These services will be availed to farmers by KCDA among other
institutions.
4.2.3 Mature Nuts
Production o" mature nuts is done nearly by all "armers e/cept those +hose trees
are yet to start production. (he mature nuts have both domestic and industrial
uses. At the domestic level they are a *ey ingredient in preparation o" various
dishes +hereby the inner Desh is utilised. At industrial level various products can
be generated both "rom the Desh as +ell as the shell and the hus*s.
During =12= it is estimated that a total o" =49-429-;=5 pieces o" mature coconuts
+ere produced
(here is a need "or "armers to be mobilised into associations or cooperatives to
ensure they sell directly to processors thus bypassing the traders and middlemen.
(his +ould improve their bargaining capacity resulting in higher prices. It should
be noted that the percentage consumed at "arm level may also include semi&
processing. (he sales to consumers include direct sales at "arm gate and also
ta*ing to mar*et.
In assessing the products it is important to loo* at an o"ten neglected aspect o"
the value chain +hich is the supply o" inputs. (he main input in coconut "arming is
seedlings.
In the past- "armers had a lot o" challenges in accessing seedlings. Conse8uently
#CDA initiated a pro?ect to supply 8uality seedlings to "armers during the
=122C=12= season. (his resulted in production o" =02-:5@ +ith a mar*et value o"
2=-0@5-511 based on an average value o" #>S 01 per seedling. $o+ever the
nursery operators under the pro?ect +ere compensated at a rate o" #>S ;1 per
seedlings.
On average- research indicated that a total o" ;=0-;50 trees are being planted on
annual basis. (his +ould translate to a value o" #>S 29-=95-:;1 at an average o"
#>S 01 per seedling. $o+ever some o" the seedlings planted are not transplanted
due to lac* o" mar*et.
#+ale County accounted "or 40.=93 o" the total production +hile #ili) County
accounted "or 4:.03. On its part- ,ombasa accounted "or =.@=3 +hile Lamu
accounted "or =.:53. On the other hand (aita (aveta accounted "or 2.293 +hereas
(ana River accounted "or 1.493 o" the total output.
Despite #ili) having more trees in the productive age brac*et it contributes nearly
the same as #+ale County. (his can be e/plained by +ine tapping +hich is more
prevalent in #ili) than in #+ale. ,ost o" the tapped trees do not yield nuts.
1ar2(%-$/ C3a$$(0& 4#r 1a%ur( Nu%&
Out o" the total nuts produced 21.2;3 +ere consumed at the "arm level- 91.53
+ere sold to traders- =;.==3 +ere sold directly to consumers +hile 4.593 +ere
sold to processors. A paltry 1.:53 +as sold through cooperatives.
(here is a need "or "armers to be mobilised into associations or cooperatives to
ensure they sell directly to processors thus bypassing the traders and middlemen.
(his +ould improve their bargaining capacity resulting in higher prices. It should
be noted that the percentage consumed at "arm level may also include semi&
processing. (he sales to consumers include direct sales at "arm gate and also
ta*ing to mar*et.
"* E&%-ma%(. Va0u( #4 1a%ur( Nu%& Pr#.u"(. -$ 01
(he estimated value o" mature nuts produced stands at #>S =.: billion. #+ale
County contributed 40.93 o" this value "ollo+ed by #ili) at 4;.03. ,ombasa
County accounted "or 0.23 +hile Lamu accounted "or ;.@3. (aita (aveta and (ana
River counties accounted "or 2.03 and 1.03 respectively.
(here is signi)cant disparity in price across counties. (here is also a +ide price
range "rom a lo+ o" #>S ; to a high o" #>S ;1. (here is need "or "armers to be
assisted +ith mar*et in"ormation on the value o" produce to protect them "rom
e/ploitation. (he high price reported in ,ombasa may ho+ever be attributed to
pro/imity to a ready and large mar*et in ,ombasa to+n. Lo+ price in areas o" high
supply and high price in areas o" lo+ supply point to a need "or deepening inter&
county trade.
a* E&%-ma%(. V#0um( #4 Imma%ur(5T($.(r Nu%& Pr#.u"(. -$ 01
4.2.4 Immature/Tender Nuts
(ender coconut 6: to @ months old maturity7 is
valued both "or its s+eet +ater- +hich is a
re"reshing drin* and the delicious gelatinous meat
6*ernel7- 6$aseena- Bai and Padmanabhan- =1217.
According to India Coconut
Board tender coconut +ater is Ithe most nutritious
+holesome beverage that nature has provided "or
the people o" the tropics to )ght the sultry
heat.J
22
In #enya tender nuts commonly *no+n as madafu are consumed mainly by the
roadside +here vendors have stallsCstands- ha+*ing +here vendors approach
buyers mostly in vehicles and in tourist hotels +here they are used as +elcoming
drin*. (he madafu are hardly sold in "ormal channels such as restaurants.
(hese mar*eting patterns are driven by t+o "actors. First the tender coconuts are
highly perishable +ith 8uality deteriorating +ithin =4&;9 hours o" harvesting.
According to $aseena- Bai and Padmanabhan- 6=1217 it is seen that tender
coconut cannot be stored "or more than one +ee* at room temperature due to
shrin*age and discoloration o" s*in- "all o" perianth and "ungal attac* on the so"t
perianth region.
(he second "actor inDuencing mar*eting o" tender nuts is that they are bul*y as
they still contain hus*s +hich limit their transportation. %onetheless processing
technology e/ists to increase the shel" li"e o" the product. (he application o" such
technologies in #enya is largely non&e/istent. Consumption is limited to the
Coastal areas and in parts o" %airobi mainly inhabited by #enyans o" Asian
descent mainly <estlands- Par*lands and %gara.
a* E&%-ma%(. V#0um( #4 Imma%ur(5T($.(r Nu%& Pr#.u"(. -$ 01
It estimated that =4-::0-=1= pieces o" immature coconuts +ere produced. (hese
are distributed as "ollo+sH
#+ale county accounts "or 00.=:3 o" the total volume o" tender coconuts
produced. #ili) County accounts "or =9.003- ,ombasa "ollo+s +ith a contribution
o" 21.@93 +hereas Lamu contributes 0.123. (ana River contributes =.=3 +hile
(aita (aveta accounts "or a paltry 1.23. (he interesting point is that ,ombasa
accounts "or 223 +hereas it only accounts "or ;3 +hen it comes to production o"
mature nuts. (his can be attributed to large and easily accessible mar*et in
,ombasa to+n. (his ma*es transportation easy in vie+ o" bul*iness as +ell as
ma*ing consumption "ast in vie+ o" perishability. (he lo+ contribution o" #ili)
County +hile compared to #+ale can once again be attributed to +ine tapping
+hich is more common in #ili).
6* 1ar2(%-$/ C3a$$(0& #4 Imma%ur( Nu%&
(he ma?or outlet "or immature nuts is through sales to traders +ho account "or
40.==3. ResidentsA o+n consumption accounts "or =0.@=3 +hile direct sales to
consumers account "or [email protected].
(he large percentage o" sales to consumers and o+n consumption can be lin*ed to
earlier discussed issues o" perishability and bul*iness. %o sales to processors or
cooperatives +ere recorded. (his can be e/plained by the lac* o" value addition
+hen it comes to processing and the high level o" in"ormality +hen it comes to
trading o" immature nuts.
"* E&%-ma%(. Va0u( #4 Imma%ur( Nu%& Pr#.u"(. -$ 01
(he estimated value o" immature nuts is #>S =91-5:2-500. #+ale County
accounted "or 4:.==3 o" this value +hile ;1.=03 is accounted "or by #ili) County.
,ombasa County on the other hand accounts "or 20.4:3 +hile Lamu accounts "or
0.:3 o" the total value o" tender nuts produced. At the tail end are (ana River and
(aita (aveta accounting "or only 2.=03 and 1.23 respectively.
C#u$%y P-("(& A'(ra/( Pr-"(Va0u( (KES*
P(r"($%
C#$%r-6u%-#$
Pr#.u"(. (KES*
%# T#%a0
Va0u(
K7a0( 2;-95;-;00 5 2=;-=41-250 4:.==3
K-0-8 9-0:@-:@= 2= :@-540-;@4 ;1.=03
1#m6a&a =-952-414 20 41-;:2-191 20.4:3
Lamu 2-=41-;02 2= 24-@@4-=2= 0.:13
Ta$a R-'(r 040-455 9 ;-=:=-554 2.=03
Ta-%a =0-@22 21 =0@-221 1.213
Ta'(%a
T#%a0 +,775,0 10,97
90,971,95
5 100,00:
<ith the average price o" mature nuts at #>S 2;.: and that o" immature nuts at
#>S 21.9: the only advantage to the "armers in selling immature nuts is that they
do not have to +ait "or the coconuts to "ully mature. Prices are lo+est in (ana
River due to lac* o" established immature nuts trade. In ,ombasa the prices are
high due to pro/imity to a ready mar*et. (he overall price range is a lo+ o" #>S 0
and a high o" #>S ;1.
4.2.5 Palm Wine/Toddy
Coconut Todd67Sa$
Coconut toddy or sap is the sweet, oyster white and translucent liquid oozing from the unopened
coconut inflorescence when cut. When sweet toddy or fresh sap undergoes spontaneous fermentation it
produces a common alcoholic drink called `fermented toddy'. The toddy becomes stale when the
fermentation exceeds 24 hours. Normally, the toddy is consumed within 12 hours after the sap is
collected. The nutritional value of toddy for thiamine and riboflavin resides mainly in the yeast-free
fluid portion. Toddy also contains small amounts of protein, fat and other nutrients. Fermented toddy,
on distillation, yields a strong alcoholic drink known as Mnazi. The range of recovery is 15-18 per cent
of the original toddy. Normally, sweet toddy is allowed to undergo fermentation in loosely covered
wooden or plastic container for 3-5 days before it is distilled.
The coconut sap is a natural sweetener obtained by concentrating fresh coconut sap to a thick
consistency through careful boiling in open containers or vessels where it is allowed to cool and form
sugar crystals.
(his is an alcoholic drin* made by the "ermentation o"
the sap "rom a coconut palm. It is +hite and s+eet
+ith a characteristic Davour. It is bet+een 4 and 93
alcohol and has a shel" li"e o" about =4 hours. (oddy
is harvested by cutting oE a slice o" tissue "rom the
tip o" the spathe 6the ne+ly emerged but not yet
open sheath o" the Do+er7.(he sap 6or toddy7
provides drin* 6s+eet and rich in vitamins +hen
"reshF alcoholic a"ter "ermentation7 and sugar- 6Foale-
=11;7.
%ormally- the toddy is consumed +ithin 2= hours a"ter the sap is collected. (he
nutritional value o" toddy thiamine and riboDavin reside mainly in the yeast&"ree
Duid portion. (oddy also contains small amounts o" protein- "at and other
nutrients- 6!achan?a- ,usinga- %gigi- Onyango and Bett- =1217.
In #enya coconut +ine is mainly consumed at the coast in drin*ing bars locally
*no+n as mangwes. Consumption is limited outside the Coast due to the short shel"
li"e. Some limited processing and pac*aging is being done thus enabling it to be sold
beyond the coastal region.
a* E&%-ma%(. V#0um( #4 Pa0m ;-$( Pr#.u"(. -$ 01
It is estimated that a total o" 20;-;22-;:: litres o" palm +ine +ere produced in
=12=. (his is sho+n in the )gure belo+F
Sources: Coconut Survey 2013
(he leading county in production o" palm +ine is #ili) contributing :93 to total
production. It is "ollo+ed by #+ale County contributing =13. (aita (aveta accounts
"or =.:3- ,ombasa accounts "or 2.=:3 +hile Lamu and (ana River account "or
1.;:3 and 1.223 respectively.
Sources: Coconut Survey 2013
Counties inhabited largely by ,uslims produce less due to religious belie"s +hich
prohibit alcohol consumption. (his e/plains +hy despite #+ale and #ili) having
nearly the same number o" trees #ili) produces more than thrice +hat #+ale
produces.
6* 1ar2(%-$/ C3a$$(0& 4#r Pa0m ;-$(
Findings indicate that @=.93 o" the +ine is sold through traders. Out o" the balance
2;.:; 3 is sold directly to consumers- ;.103 to processors and 1.9=3 is
consumed at the "arm level.
Sources: Coconut Survey 2013
i!ure 1"# C$art of Mar%etin! C$annels for Palm Wine
(his is one product +hereby the mar*et is dominated by one channel +hich points
to poor mar*et development. (here is need to develop the mar*et by diversi"ying
the channel through value addition.
Pac*aging and prolonging the shel"&li"e should be immediate priorities. Distillation
o" the palm +ine to produce other high value alcoholic drin*s should be promoted.
Direct sales to consumers may point to unlicensed operations.
"* E&%-ma%(. Va0u( #4 Pa0m ;-$( Pr#.u"(. -$ 01
(he estimated value o" the palm +ine is #>S :.= billion. #ili) County earns most o"
this money accounting "or :=.=3 o" the entire value. #+ale County "ollo+s +ith
=;.1@3 +hile (aita (aveta accounts "or =.943 and ,ombasa 2.043. Lamu and
(ana River contribute little to the value accounting "or 1.443 and 1.213
respectively.
Despite the high average price it should be noted that high price disparities +ere
noted. A high o" #>S. 211 per litre and a lo+ o" #>S. 21 per litre +ere recorded.
(here is need to provide mar*et in"ormation "or "armers on the prices o" the
produce.
It should be "urther noted that nearly hal" o" the amount does not accrue to
"armers as it is paid to the +ine tappers at an average o" #>S. == per litre.
Considering the high percentage +hich is sold- +ine is the most commercialised
o" all the coconut products.
4.2.& Coco'ood/Coconut Wood
(he coconut tree trun* is a source o" high
8uality hard+ood +hich is used "or construction-
"urniture ma*ing and production o" arti"acts.
According to research done on #enyan coconut
+ood- the characteristics and properties
obtained +ere comparable +ith those "rom
other parts o" the +orld.
(he density ranges "rom lo+ to heavy density
1.=4@ G 1.@0=gcm&;. (he bending strength- bending stiEness and crushing
strength also range "rom very +ea* to very strong due to the density variation
6Oduor and !ithiomi- =1217. (hus coconut +ood can be a good substitute "or
more common hard+oods hence aiding in conservation.
(he +ood is used in ma*ing premium 8uality "urniture. $o+ever not many are
a+are o" the coconut +ood and its characteristics. (hus mar*et a+areness is
necessary to ensure customersA +illingness to pay the premium rates.
a* V#0um( #4 C#"#7##. Pr#.u"(. a$. C#$%r-6u%-#$ %# Pr#.u"%-#$ 6y
C#u$%-(&
Findings indicate that a total o" 29@-==4 +ere cut in =12=. (he distribution by
counties is as sho+n belo+.
Sources: Coconut Survey 2013
i!ure 1(# )ra*$ of +stimated Production of Coco'ood in 2,12
(hese )ndings "urther sho+ that #+ale County +as the leading producer o"
Coco+ood accounting "or 0:.93. It +as "ollo+ed by #ili) County +hich accounted
"or ;2.123- ,ombasa at 0.493 and Lamu at 4.9:3. (ana River and (aita (aveta
counties made minimal contribution at 1.4:3 and 1.:53 respectively. (his is
sho+n in the chart belo+F
Sources: Coconut Survey 2013
i!ure 2,# C$art of County Contri-ution to Production of Coco'ood in 2,12
(hese )ndings may create an alarming impression that massive "elling o" coconut
trees is going on in #+ale +hen compared to #ili) as both have nearly the same
number o" trees. (his can ho+ever be e/plained by the )ndings on age o" trees
+hich sho+ that #+ale is leading in no. o" trees aged 92 and above +hich are
2-=52-:=@ compared to #ili) +ith 404-0:@ such trees. It is at this age that the
trees become senile and underproductive.
6* 1ar2(%-$/ C3a$$(0& 4#r C#"#7##.
(he mar*eting dynamics indicate interesting results +hich point to lo+ commercial
e/ploitation o" the coconut +ood. According to Oduor and !ithiomi 6=1217- eEorts
to promote the use o" Coco+ood in #enya started in early =11; in an attempt at
searching "or alternative +ood species +hich could be used in the +ood carving
sub&sector.
Findings indicate that ma?ority o" the +ood cut is sold to consumers i.e. 44.=03
+hich is "ollo+ed closely by 4;.@23 +hich is utilied by the "armers. (he
remaining 22.543 is sold to traders. (his is sho+n in the )gure belo+F
Sources: Coconut Survey 2013
i!ure 21# C$art of Mar%etin! C$annels for Coco'ood
(hese )ndings reveal lo+ commercial utiliation. (here is need to step&up the
eEort to promote the commercial utiliation to ensure "armers get value "or the
trees. Oduor and !ithiomi 6=1217 highlighted various challenges +hich may
e/plain this situation. (hese includeF
i. Selection o" the senile coconut tree- splittingCsa+ing and grading "or speci)c
use not yet "ully understood by most players in the #enyan mar*et-
ii. $igh cost o" seasoning 6#iln technology7 and other operations on coconut
+ood
iii. Lac* o" *no+&ho+ in coconut +ood )nishing and preservation technology
iv. Inade8uate mar*et acceptance o" coconut +ood products at IpremiumJ
prices
v. Lo+ level o" coconut tree replenishment in the country "or sustainable
harvesting and utiliation o" the resource.
"* E&%-ma%(. Va0u( #4 C#"#7##. Pr#.u"(. -$ 01
(he Coco+ood harvested in =12= is valued at #>S 2@@-9:1-=50. As e/pected-
#+ale contributes the bul* o" this accounting "or 9=.143 "ollo+ed by #ili) at
=:.23 +hile ,ombasa and Lamu each contribute 4.@:3. (aita (aveta contributes
1.:23 +hile (ana River contributes 1.4=3.
4.2.. Ma%uti/ Coconut T$atc$
Sources: Coconut Survey 2013
Ta-le 15# +stimated Value Coco'ood Produced in 2,12
Makuti are pieces o" roo)ng material made
"rom coconut leaves. It is a very eco "riendly
or IgreenJ building material as it is made
"rom leaves that are naturally +ilting on the
palm tree and there"ore harvesting does not
aEect the parent plant in any +ay. (he
individual pieces 6or tiles7 have to be
+eaved )rst- 6I,a*utiJ- =12;7.
(he Makuti are valued "or aesthetic value
and their ability to stay cool under the hot
coastal +eather. (he demand and value o"
Makuti has risen rapidly
over the last ten years. Long held as a cheap alternative to the e/pensive roo)ng
materials- palm branches commonly re"erred to as makuti are "ast rising as a
symbol o" prestige and cultural attraction in coast hotels- a phenomenon that has
seen their prices on an unprecedented up+ard tra?ectory "or the last decade +ith
even )ve star hotels and villas spending millions in makuti roo)ng- 6,uinde-
=12;7.
There is already enough demand for the products of this value chain in the coastal region. However,
in efforts to expand sales, new and emerging markets in hot areas outside the Coast region will
explored for the sale of makuti. These areas include counties in Eastern, Nyanza, North Eastern
and Rift Valley provinces that experience hot weather conditions.
(his rise in demand though positive has resulted in some undesirable activities.
Some "armers no+ harvest the leaves and dry them under the sun instead o"
+aiting "or them to "all oE the trees. (his might aEect the trees i" not properly
handled. It also results in poor 8uality.
The cutting down of senile coconut trees (cocowood) and harvesting of leaves (makuti) is expected to
increase annually by 5%. The cutting down of aged coconut trees will be done sustainably, through a
replacement program that emphasizes on replanting new coconuts once the old ones have been
harvested. Farmers will be educated on responsible cutting down of coconut trees and the best
harvesting methods.
a* V#0um( #4 1a2u%- Pr#.u"(. a$. C#$%r-6u%-#$ %# Pr#.u"%-#$ 6y
C#u$%-(&
It is estimated that a total o" 2;2-5=9-551 pieces o" ,a*uti +ere produced in =12=
Sources: Coconut Survey 2013
i!ure 22# )ra*$ of +stimated Production of Ma%uti in 2,12
#ili) County led in production accounting "or a +hopping 95.:43 o" the total
production. It +as "ollo+ed by #+ale County +hich contributed =;.053. Lamu on
its part contributed 4.@43 +hereas ,ombasa settled "or 2.1;3. (ana River County
contributed the least +ith 1.@3 +hereas (aita (aveta had nothing to oEer. (his is
sho+n in the )gure belo+F
6* 1ar2(%-$/ C3a$$(0& 4#r 1a2u%-
Out o" the entire production 9.@53 +as consumed by the "armers- ;@.;;3 +as
sold directly to )nal consumers +hereas 0;.;@3 +as sold to traders. (he
remaining 2.43 +as sold through cooperatives. (his is sho+n in the )gure belo+F
Sources: Coconut Survey 2013
i!ure 24# C$art of Mar%etin! C$annels for Ma%uti
"* E&%-ma%(. Va0u( #4 1a2u%- Pr#.u"(. -$ 01
(he value o" the ,a*uti produced is estimated at #>S 2.: billion. As e/pected- #ili)
contributed a large share o" this value at [email protected]=3 "ollo+ed a distant second by
#+ale +hich +eighed in +ith =;.2@3. Lamu +as third +ith a contribution o" 9.503
+hile ,ombasa contributed 1.5;3- (ana River 1.4;3 +hereas (aita (aveta
contributed nothing.
Ta-le 1&# +stimated Value of Ma%uti Produced in 2,12
4.2." /rooms
Coconut brooms are made "rom the leaves o" a coconut
tree. (hey are said to be easy to use and have a long
"unctional li"e. ,any types o" brooms can be made "rom the
coconut leaves. One can ma*e brooms +ith a stic* and
others +ithout "or instance.
a* V#0um( #4 Br##m& Pr#.u"(. a$. C#$%r-6u%-#$ %# Pr#.u"%-#$ 6y
C#u$%-(&
It is estimated that a total o" 0-@11-2:5 brooms +ere made in =12=.
Sources: Coconut Survey 2013
i!ure 25# )ra*$ of +stimated Production of /rooms in 2,12
One interesting point is that !achan?a- Odhiambo and ,usila- 6=11:7 reported the
production o" brooms at @-:91-=04 pieces +hile our )ndings reDect 0-@11-2:5
pieces. (he li*ely e/planation is that ,a*uti being also a product o" coconut
leaves are oEering stiE competition to brooms. Both the demand and value o"
,a*uti is rising rapidly.
(his vie+ is also supported by the )nding that +hile in =119 #ili) and #+ale
produced nearly the same volume o" ,a*uti- #ili) is no+ leading by a large
margin. On the contrary #ili) no+ trails #+ale +hen it comes to production o" the
brooms.
Findings indicate that #+ale County contributed most to production o" brooms
+ith a share o" 0;.2=3. It +as "ollo+ed closely by #ili) +ith ;5.523. Lamu
+eighed in a distant third ;.03 +hereas ,ombasa dre+ in ;.4@3. (ana River and
(aita (aveta counties didnAt register any contribution. (his is sho+n in the )gure
belo+F
Sources: Coconut Survey 2013
i!ure 2&# C$art of +stimated Production of /rooms in 2,12
6* 1ar2(%-$/ C3a$$(0& 4#r Br##m&
(here are three outlets "or the produced brooms. Out o" the total production
2=.=5 +as consumed by the producers- ;5.43 +as sold to traders +hereas
4@.;23 +as sold directly to consumers. (his is sho+n belo+F
Sources: Coconut Survey 2013
i!ure 2.# C$art of Mar%etin! C$annels for /rooms
(he high percentage o" brooms sold directly to consumers point to mar*et
ineBciency. (here is need to improve the volume o" sales progressing through
the "ormal channel +here it is possible to stimulate more demand and get higher
value.
"* E&%-ma%(. Va0u( #4 Br##m& Pr#.u"(. -$ 01
(he estimated value o" brooms produced stands at #>S 225- 941- 1:2. #ili)
leads in contribution to this value +ith a share o" 01.;3 +hile #+ale "ollo+s
closely +ith a share o" 4;.:@3. Lamu and ,ombasa account "or the balance at
;.;53 and =.0;3 respectively.
Sources: Coconut Survey 2013
Ta-le 1.# +stimated Value of /rooms Produced in 2,12
It is interesting to note that #ili) accounts "or a higher percentage than #+ale
despite #+ale leading in the volumes produced. (his is because higher prices
+ere realised in #ili) compared to #+ale.
4.2.( 0us%s and i-re
,ost "armers are ignorant o" the value addition capacity o" the coconut hus*.
During the year =122 the country imported coco&peat products +orth #>S 54.:,
"or use mainly in the horticulture sector. (his is product made "rom coconut
hus*s. Only :3 o" the "armers indicated selling the hus*s. It should ho+ever be
noted that some coconuts are e/ported +ith the hus*s on. Regarding value
addition to the hus*s only ;.:3 o" the "armers indicated producing )bre.
4.2.1, Processed Products
(he processing aspect o" the industry is highly "ragmented- small in scale and
abnormally in"ormal +hen compared +ith other agricultural sub&sectors. (his is
complicated "urther by the many number o" products +hich can be made "rom
the coconut tree. (his ma*es traceability and valuation o" processed products
diBcult. In addition there are no statistics o" volume o" ra+ materials ta*en in
and )nal output o" the processed products. #CDA should there"ore prioritise and
e/pedite the process o" collecting monthly ra+ materials inta*e and )nished
goods output "rom all licensed processors.
Some o" the processors have closed shop albeit temporarily e.g. ,utpet- Deepan
,anu"acturers Ltd- #o*ocepts and ,samb+eni Partners Sel" $elp !roup. Some o"
the reasons given "or closure include unavailability and high cost o" ra+
materials. Some o" the processors produce as per order. (he "ollo+ing tables the
processors o" some nut product and their capacity.
Sources: KCDA
Ta-le 1(# Production Ca*acity of a 1ey Processor of
2esiccated Coconut
N: Conversion of dai!y ca"acity to annua! assumes a 300 day#year o"erating time
Sources: KCDA
Ta-le 2,# Production Ca*acity of 1ey Processors of Co*ra 3il
Coco .eat
This is 'coir pith' or 'coir dust' is produced as a by-product when coconut husks are processed for the
extraction of long fibre. Coco peat is the binding material that comes from the fibre fraction of the
coconut husk. Coco peat is a good form of material when used in seed raising and propagation mix. It is
proven that coco peat is a better media for growing commercial vegetable and flower seedlings
compared to peat moss! "or instance, #enyas coco peat carries water eight times its weight, thus
making it ideal as a growing medium. This guarantees a greater advantage over peat moss.
+,! Summary #4 Pr#.u"%& a$. Va0u(
Belo+ is a summary o" estimated volume and value o" coconut products produced
in =12=.
Pr#.u"% <$-%& V#0um(
Va0u(
m(KES*
P(r"($%
C#$%r-6u%-#$
;-$( Litres 20;-;22-;:: :-=;9-0=;-;== 05.13
1a%ur(
$u%& Pieces =49-429-;=5 =-95;-;41-450 ==.13
1a2u%- Pieces 2;2-5=9-551 2-:40-920-92: 24.=3
Imma%ur( Pieces =4-::0-=1= =91-5:2-500 =.23
$u%&
Tr((
%ru$2&
%o. o"
(rees 29@-==4 2@@-9:1-=50 2.03
Br##m& Pieces 0-@11-2:5 225-941-1:2 2.13
S((.0-$/& %o. o" ;=0-;50 29-=95-:;1 1.23
Seedlings
T#%a0
1,91,0!1,+
=+ 100,0:
Source: 2013 Coconut Survey
Ta-le 21# +stimated Volume and Value of Coconut Products Produced in 2,12
Palm +ine continues to provide a huge proportion o" the sub&sector earning.
(here is need to increase value addition o" palm +ine to ensure more gains are
realised.
Tende" Coconut 8ate"
This is the liquid endosperm which occupies the large volume of space enclosed by the kernel inside the
fresh coconut fruit. Coconut water is a natural, fat-free, low calorie and nutritious thirst quencher and
energy drink packaged by nature itself. With very low total solid content, coconut water is a very
nutritious fluid which contains sugar, protein, vitamins and micro-minerals needed by the human body.
It is a good source of electrolytes such as potassium, sodium, magnesium, calcium and chloride and it
rehydrates the body and is a natural isotonic beverage because of its balanced electrolyte content. It is
claimed to be a natural contender in the sports drink market with its delicate aroma, taste, nutritional
and functional characteristics required in a sports drink. Water from tender young coconut (7 $ 9 month
old) has been medically proven to dissolve kidney stones. By modifying its electrolyte content, it was
been successfully used in oral rehydration and treatment of diarrhea in young children.
Con-ectione"6 ."oduct
The fresh coconut harvested for the flesh and milk is used to make the coconut cream, the flakes,
powder, and desiccates. These components are largely ingredients for the baking industry in Kenya.
KASHATAS, CAKES, ICE CREAM FLAVOURED ETC
C#)ra
Copra is the dried coconut kernel. The name copra is derived from the Malayan word Kopra for dried
coconut. Copra and the oil it contains are the principal products of the coconut tree. For years copra has
been the primary product common to all coconut growing countries of the world. Copra making
prevents the spoilage of fresh coconut meat by reducing its moisture content to a level safe for transport
or storage. It is produced by drying split coconut kernels in shell (husked or un-husked) in the sun, in
kiln dryers or a combination of both. The kernel is removed from the shell when it is partially dried or at
the end of the drying operation. CHICKEN FEED
9i"+in Coconut Oi#
This is the purest form of coconut oil that is water white in colour and contains natural Vitamin E and
has very low peroxide value and low free fatty acid content. Virgin coconut oil is suitable for human
consumption in its natural state immediately after extraction and filtration. Normally it solidifies at
temperatures of 22 degrees centigrade and below, and liquidifies at temperatures of 27 degrees
centigrade and above. This oil is obtained from the fresh and mature kernel of coconut by mechanical or
natural means with or without the application of heat which does not lead to alteration of the oil and its
properties. It is reputed as "mother of all oils" due to its many important uses.
Coi" :i'"e DOOR;ATS
Coir fibres are found between the husk and the outer shell of a coconut. The individual fibre cells are
narrow and hollow, with thick walls made of cellulose. They are pale when immature but later become
hardened and yellowed as a layer of lignin is deposited on their walls. There are two varieties of coir.
Brown coir is harvested from fully ripened coconuts. It is thick, strong and has high abrasion resistance.
It is typically used in mats, brushes and sacking. Mature brown coir fibres contain more lignin and less
cellulose than fibres such as flax and cotton and so are stronger but less flexible. They are made up of
small threads, each about 1 mm long and 10 to 20 micrometres in diameter. White coir fibres are
harvested from the coconuts before they are ripe. These fibres are white or light brown in colour and are
smoother and finer but also weaker. They are generally spun to make yarn that is used in mats or rope.
The coir fibre is relatively water-proof and is one of the few natural fibres resistant to damage by salt
water.
+,+ Curr($% E"#$#m-" Va0u( #4 %3( C#"#$u% Su6>S("%#r
(he coconut industry contributes to the economy in diverse +ays that include
contribution to the !DP- employment and livelihoods- mitigation o" "ore/ losses-
and to the hospitality industry as discussed hereunder.
4.4.1 Contri-ution to )2P
According to <orld Ban* country statistics- #enyan !DP in =12= stood at #>S ;.4
trillion +hile agriculture !DP stood at #>S @15.4 billion. It can thus be concluded
that the coconut sub&sector contributed 2.03 o" the agricultural !DP and 1.43 o"
the national !DP. <hile these )gures may appear lo+- it should be noted that the
industry "aces challenges in managing statistics and there"ore a lot goes
unaccounted "or.
4.4.2 Contri-ution to +m*loyment and 4i5eli$oods
(he number o" "armers engaging in coconut production is estimated at 211-254.
In addition the subsector provides income to seedling "armers- harvesters- de&
hus*ers and +ine tappers. Kp the value chain- the subsector provides a livelihood
to traders- transporters and processors.
4.4.3 Pre5ention of ore6 4osses
(he value o" the production is estimated L244.= million. <ere these products to
be imported the countryAs "ore/ reserves +ould be negatively impacted.
4.4.4 Contri-ution to 0os*itality and Tourism
(he industry contributes through decorative value o" live trees and ,a*uti +hich
are +idely used in construction o" tourism hotels. ,ada"u are also used as a
+elcoming drin* "or tourists +ithin the coastal region.
+,5 Im)#r% a$. E?)#r% #4 C#"#$u% Pr#.u"%&
(his section analyses the data on import and e/port trade o" coconut products.
(he year analysis data is "or the year =122.
4.5.1 Value and Volumes of Im*orts
(he imports "or =122 +ere as sho+n belo+. Products +eighing a total o" @.2
million #gs valued at #>S @=0.2 million +ere imported.
Im)#r%& 011
Pr#.u"%
;(-/3% -$
K/&
C-F Va0u( -$
KES
C#"# P(a% ;-=15-=51.11 54-99;-;=5
C#"#$u% Cr(am @[email protected] =-24@-2;:
C#"#$u% Cr(am
P#7.(r =-95;.11 2-:;;-40:
C#"#$u% 1-02 ==-00=.11 =-90@-:@0
C#"#$u% 1-02 P#7.(r @-:1;.11 4-=;0-4;;
C#"#$u% O-0 4-905-420.11 950-=5:-;@9
C#"#$u%& :9-1::.11 =-44;-:@5
C#&m(%-"& =-:[email protected] ;:4-=00
D(&-""a%(. C#"#$u% @0-211.11 2@-525-45=
Na%a D("#"# ;;-442.11 =-919-509
Gra$. T#%a0 =,10=,0=!,00 =5,0=1,019
Sources: Data $y K%A Customs De"artment& Ana!ysis $y Aut'or
Ta-le 22# Im*orts of Coconut
Products in 2,11
4.5.2 Contri-ution -y Various Products to Value of Total Im*orts
(he ma?or products imported +ere coconut oil- coco peat and desiccated
coconuts contributing @4.=:3- 22.4:3 and =.=53 o" the total value o" imports
respectively. (his amounted to [email protected];3 o" the total imports +ith the balance o"
2.5:3 being contributed by other products as sho+n in the )gure belo+F
Sources: Data $y K%A Customs De"artment& (Ana!ysis $y Aut'or)
i!ure 2"# C$art of Contri-ution -y Products to Value of Total Im*orts in 2,11
(here is need to increase production o" coconut oil and coco peat as there is a
local mar*et "or the products. ,ost o" the coconut oil +as crude oil +hich is a ra+
material in manu"acture o" beauty products. Kn"ortunately most o" the coconut
hus*s "rom +hich coco peat is made are thro+n a+ay or used as "uel by the
"armers oblivious o" their value. (here is also a need to lin* the importing
companies +ith local producers to stem the loss o" "ore/ in importing products
+hich can be substituted by local production.
4.5.3 3ri!in of Im*orts
(he *ey origins o" coconut imports into the country +ere Indonesia accounting "or
4;.0:3- "ollo+ed by Singapore at 42.@;3- India at 9.103 and Sri Lan*a at 0.03.
(ogether these countries accounted "or 5:3 o" the imports +ith the balance
coming "rom other countries as sho+n belo+F
Sources: Data $y K%A Customs De"artment& Ana!ysis $y Aut'or
i!ure 2(# Contri-ution -y Countries to Value of Total Im*orts in 2,11
4.5.4 +6*orts
#enyan coconut e/ports mainly comprise ra+ nuts. (his has been a source o"
serious concerns +ith some even arguing "or a ban on ra+ nuts e/ports.
$o+ever- this +ould be counterproductive +ithout an assured local mar*et. It
could lead to an oversupply in local mar*et depressing prices leaving "armers
+ith no option but to abandon the trees li*e +as the case +ith cashe+ nuts
sometime bac*.
4.5.5 Value and Volumes of +6*orts
Products +eighing a total o" @.9 million #gs valued at #>S ;5.@ million +ere
e/ported. It should be *no+n that there is a lot o" cross border coconut trade
bet+een #enya and (anania all o" +hich may not be captured in oBcial
statistics. Also the value o" coconuts appears to be grossly understated at #>S
=.0 per *g. (his is sho+n in the table belo+F
E?)#r%& 011
Pr#.u"%&
;(-/3% -$
K/&
CIF 'a0u( -$
KES
C#"#$u%& @-4=9-=:2 =2-0;=-014
V-r/-$ C#"#$u% O-0 2@-5:9 9-1:1-550
C#"# P(a% @@-=11 0-2;;-210
C#"#$u% O-0 29-491 ;-4;1-100
D(&-""a%(.
C#"#$u%& 5-2:: ;-1;@-12=
C#"#$u% F-6r( 20-1=0 91@-2;;
C#"#$u% 1-02 =0 9-=44
Gra$. T#%a0 =,57+,1!+ !9,=19,0+9
Sources: Data $y K%A Customs De"artment& Ana!ysis $y Aut'or
Ta-le 23# +6*orts of Coconut Products in 2,11
(he high e/port o" ra+ coconut is a threat to value addition to the coconuts. (his
is reDected by the "act that the imports are dominated by value added coconut
products. (his results in lo+ commercialiation o" the sector- poor income to
value chain actors- loss o" employment creation opportunities as +ell as "ore/
losses. (he overall impact o" this is diminished contribution o" the coconut
subsector to +ealth creation and development in the Coastal region. <hile an
e/port ban is not recommended "actors that limit processors capacity to add
value need to addressed. Lin*ages bet+een "armers and processors also need to
be strengthened.
4.5.& Contri-ution -y Various Products to Value of Total +6*orts
#ey coconut products e/ported by #enya are ra+ coconuts +hich in =122
accounted "or 04.1@3 o" all e/ports. (he other products contribution to e/ports
+as as "ollo+sF 'irgin Coconut Oil at 20.=03- Coco Peat at 2=.@53- Coconut Oil at
@.923- Desiccated Coconut at :.9;3- Coconut Fibre at 2.0;3 and Coconut ,il*
at 1.1=3. (his is sho+n in the )gure belo+F
Sources: Data $y K%A Customs De"artment& Ana!ysis $y Aut'or
i!ure 3,# Contri-ution -y Products to Value of Total +6*orts in 2,11
4.5.. 2estination of +6*orts
(he *ey coconut e/ports destination in =122 +ere (anania 60:.=37- Kganda
624.5237- KSA 622.;937 and Memen at [email protected]@37. (hese accounted "or 5=3 +ith
the balance going to other countries as sho+n belo+F
Sources: Data $y K%A Customs De"artment& Ana!ysis $y Aut'or
i!ure 31# C$art of Contri-ution -y Country to Value of Total
+6*orts in 2,11
4.5." +6*ort Trends
(he "ollo+ing analysis +ould have been more in"ormative i" it had captured a
longer period pre"erably 21 years. (he available in"ormation ho+ever only
allo+ed a comparison o" a three year trading period 6=121 & =12=7. In the limited
observation there +as an increasing trend "rom =121 to+ards =122 +hich
dropped in =12=. It is not predictable ho+ the "uture trends in this segment +ill
loo* li*e but this +ill depend a lot on +hat interventions the value chain
inDuencers +ill direct to+ards the sector.
Sources: Data $y K%A Customs De"artment& Ana!ysis $y Aut'or
i!ure 32# )ra*$ of Trends in +6*ort o5er t$e 7ears
+,9 K(y I$.u&%ry P0ay(r& -$ %3( C#"#$u% Va0u( C3a-$
An agricultural value chain comprises )ve *ey activities namelyF input supply-
production- processing- trading and consumption. In addition to these are various
support services providers. (he coconut value chain has the "ollo+ing *ey players
along the value chain.
4.&.1 In*ut 8u**ly
(he *ey inputs in the coconut value chain are seeds- seedlings- "ertiliers-
manure and +ater. $igher up the value chain are suppliers o" e8uipment- tools-
machines and consumables used in activities such as "arming- +ine tapping-
harvesting and processing. (he *ey players in input supply in coconut value chain
areF
4.&.2 8eed Nut 8u**liers
(he seed nut suppliers are "armers +ho allo+ the nuts to mature to a level +here
they can be used as seeds. (o ensure 8uality seeds #CDA engaged in an e/ercise
+hich led to mar*ing o" over @-111 coconut trees +ith good production 8ualities-
6#ahindi- =12=7. (his +ill ensure 8uality seedlings +ith ultimate improvement in
productivity. Seed nut suppliers play a critical role in ensuring ade8uate and
consistent supply o" seeds "or planting by the nursery operators.
4.&.3 Nursery 3*erators
(hey supply coconut seedlings to "armers. (hey play an
important role o" ensuring ade8uate and 8uality
seedlings are available. (hey can also play a *ey role in
introducing ne+ seedling varieties. #CDA has continued
to invest in nursery operators through supply o" seeds-
)nancing- e/tension and training. In this regard more
than 411 nursery operators have been trained
throughout the coastal region- 6#ahindi- =12=7.
4.&.4 8u**liers of 3t$er armin! In*uts
(hese provide inputs such as chemicals and "ertiliers. ,ost coconut "armers do
not use these inputs due to lac* o" a+areness and )nancial constraints. (hey play
a *ey role in stoc*ing the supplies and oEering advice to "armers. (hey can also
pass critical in"ormation to "armers e.g. through distribution o" "arming pamphlets
and brochures.
4.&.5 8u**liers of Non9farmin! In*uts
(hey provide tools- e8uipment- machinery and consumables. Players in this area
include "abricators o" processing e8uipment- suppliers o" labeling and pac*aging
materials. (hey play a *ey role in "acilitating value addition to various coconut
products.
4.&.& Production of Primary Coconut Products
(he *ey players here are "armers. It is estimated
that there are about 211-254 "armers spread
across the coastal region. (he "armers are mainly
small scale +ith an average o" 55 trees per
"armer. (he "armers play a critical role in ensuring
that upstream value chain players such as
traders and processors have consistent supply o"
8uality products. At the production level there are
other players +ho are important. (hey includeF
4.&.. 0ar5esters
(he harvesters climb the tree and "ell the tender or mature nuts. (his is in a +ay a
specialised s*ill since not everyone can climb the trees. (he harvesters are paid
per nuts or per tree harvested. Some o" the harvesters are "amily members +ho
oEer the services "or "ree.
4.&." 2e9$us%ers
(hey prepare the nuts "or the mar*et by removing the outer cover *no+n as the
hus*s. (he de&hus*ed nuts are easier and cheaper to transport as they are less
bul*y. (he de&hus*ers are paid mostly on the basis o" number o" nuts de&hus*ed
rather than duration +or*ed.
4.&.( Wine Ta**ers
(hese are people +ith specialised s*ills in +ine tapping. (hey climb the tree to
tap the +ine and to collect the toddy +hich has settled on the bottle attached to
the cut Duorescence. (he payment "or +ine tappers is usually in *ind through
various arrangements. In some cases the tappers share the +ine on a 01H01 basis
or alternate days +hereby the tapper ta*es one dayAs harvest and the "armer
ta*es "or the ne/t dayAs.
+,7 Tra.-$/ #4 C#"#$u% Pr#.u"%&
(he *ey players here are traders- "armer organisations- agents and logistic
service providers.
4...1 Traders in t$e Coconut Value C$ain
(he traders play *ey roles +hich includeF
i. Identi)cation o" location o" produce
ii. Bul*ing o" products G they gather produce "rom various "armers "or sorting-
grading and pac*aging
iii. Facilitating logistics e.g. transport- pac*aging and storage
iv. In coconut value chain- traders play a critical )nancing role as they pay the
"armers upon +hich point they ta*e o+nership o" produce and all the ris*s
therea"ter. (hey also o"ten pay "or harvesting and de&hus*ing o" coconuts.
v. (raders also provide "eedbac* to "armers e.g. on 8uality o" products and
consumer complaints or suggestions.
(he traders include retailers- +holesalersCdistributors- e/porters and importers.
(here is also the palm +ine bar operators *no+n as mangwes +ho sell the palm +ine
to )nal consumers.
4...2 armers/Producer 3r!anisations
Some "armers and +ine tappers are organised into associations or groups such as
cooperatives. (he groups play a *ey role in bul*ing produce- loo*ing "or mar*et
and negotiating "or good prices "or members. Such groups can also play *ey roles
in value addition and provision o" )nancial services. In addition the groups ma*e
it easier "or members to receive services such as in"ormation- lin*age- e/tension
and training.
4...3 :!ents/Middlemen
(hese are also *no+n as bro*ers and they play *ey role o" lin*ing buyers and
sellers. (hey are hated by "armers +ho complain that they e/ploit them.
%onetheless the bro*ers play a *ey role in managing in"ormation along the value
chain.
4...4 4o!istic 8er5ice Pro5iders
(hey provide services such as transport- +arehousing and pac*aging in
distribution logistics. ,ost "armers and traders do not o+n a means o" transport
and rely on e/ternal transport such as PS's- commercial distribution vehicles-
human beings- bi&cycles- motorcycles- carts and animals such as don*eys among
others. (hey ensure the products reach the consumers at the right place- at the
right time and at the right condition.
4...5 Processin! of Coconut Products
#ey players here are the primary and secondary processors. (hey play a *ey role
in value addition. <here processors have contractual arrangement +ith producers-
they can play a critical role o" providing- stable- reliable and "avorable mar*et. In
the coconut sub&sector the primary processors are mainly "armers or "armer
groups +ho ma*e products such as Makuti- brooms and arti"acts. Secondary
processors engage in more advanced value addition by producing various nut-
timber and +ine products.
4...& Consumers of Coconut Products
Consumers are critical "or +ithout them there can be no industry. (here are various
+ays in +hich consumers o" coconut products can be categoried. (hese includeF
i. Domestic vs. international consumers
ii. Krban vs. rural consumers
iii. Coastal vs. up&country consumers
iv. Individuals vs. institutional consumers
v. Final consumers vs. industrial consumers
4....Value C$ain acilitators
(hese play a critical role o" oEering support services to various value chain actors.
(he *ey players here areF
i. !overnment both national and county governments +ho oEer various
services such as subsidied inputs and e/tension services
ii. Regulators ensure players abide by stipulated rules "or the bene)t o" the
industry. #ey regulators relevant to coconut subsector include #CDA-
%ACADA- #>P$IS- #>BS- #RA e.t.c
iii. Research institutions create a *no+ledge base "or various aspects o" the
chain "rom production to consumption. In the coconut sector +e have
institutions such as #ARI +hich provide agricultural research services- #enya
Industrial Research and Development Institute 6#IRDI7 +hich conducts
research and development in all industrial and allied technologies. Other
research related institutions include universities and %ational Council "or
Science and (echnology.
iv. %on&governmental organiations G these are mainly not "or pro)t
organiations +hich are not o+ned or operated by government. In the
coconut sectors there are many non&state actors involved. (hese in addition
to %!Os include Community Based Organiations 6CBOs7 and Faith Based
Organiations 6FBOs7. Such groups are involved in activities such as
advocacy and even value addition. ,ost o" the processors in the coconut
sector have a non&pro)t orientation or bac*ground.
v. (rade "acilitators are organiations +hich promote trade in the coconut
products such as >/port Promotion Council.
vi. Business development service providers are private pro"essionals
oEering advisory services such as research- consultancy and training on
various business aspects
vii. Financial institutions provide )nancial services to players along the
value chains. (hey include ban*s- SACCOs- ROSCAS- ,icro)nance
Institutions- donors- government devolved "unds and private e8uity )rms
among others.
+,= C3a00($/(& Fa"-$/ P0ay(r& -$ C#"#$u% Su6&("%#r
(his section loo*s at the challenges encountered along the value chain by various
players. Addressing these challenges +ill increase value chain eBciency and the
subsectors gains.
4.".1 C$allen!es aced -y Nursery 3*erators
Pr#.u"%-#$ C3a00($/(& Fa"(. 6y Nur&(ry O)(ra%#r&
Challenges +ere encountered by 513 o" the operators. (he ma?or production
challenges "aced are drought and lac* o" *no+ledge and s*ills each noted by
=;.;3 o" the respondents. (hese are "ollo+ed by pests and diseases by 29.:3-
the"t o" seedlings by 2;.;3- lo+ seed 8uality by 2;.;3 and inade8uate supply o"
seeds also "aced by 2;.;3 o" the respondents. Other challenges are "aced by less
than 213 o" the respondents as sho+n in the )gure belo+F
Sources: 2013 Coconut Survey
i!ure 33# )ra*$ of Production C$allen!es acin! Nursery 3*erators
Pr#.u"% D(8$-%-#$5D(&"r-)%-#$ <&(&5R(mar2&
Coco *eat Cocopeat 6also *no+n

It is used as gro+th medium "or
as cocos or coir7 is the
pithy high value crops. Its demand in
remnants o" the coconut #enya is rising.
hus* a"ter the e/traction
o"

Also used as an industrial

absorbent
coir )bre.
Coconut mil%
(his is the li8uid that
comes

Ksed as ingredient in preparation o"
"rom the grated
meatC+hite various dishes
Desh o" a coconut
Coir i-re coir is the )brous material

(ypically- +hite coir spun into yarn
"ound bet+een the hard-
is used in the manu"acture o"
rope
internal shell and the
outer
and- than*s to its strong
resistance
coat o" a coconut to salt +ater- in )shing nets.

Bro+n coir is stronger and more

+idely used than +hite coir.
Applications include sac*ing-
brushes- doormats- rugs-
mattresses-
insulation panels and pac*aging
Co*ra (his is the dried *ernel or

Coconut oil is e/tracted "rom it
meat o" the coconut i.e.
the

(he resulting residue called copra
+hite Desh inside the shell ca*e is used as livestoc* "eed
Co*ra ca%e (he residue o" copra a"ter

Ksed as livestoc* "eed
e/traction o" oil
Co*ra oil Oil e/tracted "rom copra

Industrial uses e.g. biodiesel- engine
lubrication- trans"ormer oil etc

Ksed "or coo*ing

Cosmetic application and soap

manu"acture
2esiccated Desiccated Coconut is a

Desiccated Coconut is ideal "or use
coconu
t
grated- dried 6;3
moisture as )llers- toppings and as
content ma/.7- and
ingredients- especially in the
ba*ing
uns+eetened "resh meat
or
o" biscuits- snac* bars-
ca*es-
*ernel o" a mature
coconut. coo*ies and so on.
Nata de coco It is a che+y-

%ata de coco is most commonly
translucent- ?elly&
s+eetened as a candy or
dessert-
li*e "oodstuE produced by
and can accompany many
things
the "ermentation o"
coconut
including pic*les- drin*s-
ice
+ater. cream- puddings and "ruit mi/es.
Vir!in
Coconu
t Coconut oil is an edible oil

It has many applications in coo*ing
3il
e/tracted "rom the *ernel
or e.g. "rying
meat o" matured coconuts

It has industrial application such
as
harvested "rom the
coconut lubrication and "uel
palm. It has various

It has personal application +here

it
applications in "ood- can be used a moisturier and is
medicine- and industry.
used as an ingredient in soap
and
hair products
Source: Com"i!ed $y aut'ors from various on!ine
sources
Pr#.u"% Ra7 V#0um(
Pr#.u"%-#
$ V#0um( C#&% #4 C#&% #4
1a$u4a"%ur-$
/ T#%a0
1a%(r-a
0
#4
<$-%& u$-%& (,/, #4 <$-%& ra7
Tra$&)#r
% "#&%& C#&%&
<$-%& #4 ra7 )-("(&,
)r#.u"(
.
ma%(r-a0
&
(,/,
ma%(r-a
0 2/&, )(r
)-("(&, 6#u/3% m#$%3
2/&,
0-%r(&
Coco
timber
Desiccate
d
coconut
Copra
Copra oil
'irgin
coconut oil
Coconut
mil*
6cream
and light7
Bottled

AR(IFAC(S- LA,P S$AD>S- SOAPS BODM LO(IO% A%D CR>A,- DOOR ,A(S- COIR FIBR> A%D
ROP>S- COCOP>A(- ,A#K(I- FKR%I(KR>- <OOD- C$ARCOAL- S$>LL- BROO,S- 'I%>!AR-
PAL, <I%>- COCO%K(
Pr#.u"% V#0um(&#0. S(00-$/
V#0um
( S(00-$/ V#0um( S(00-$/
-$.-'-.ua0&
(,/,
)r-"(
)(r S#0. %#
Pr-"(
P(r (?)#r%(.
Pr-"(
P(r
502/& u$-%
%ra.(r
& <$-% <$-%
Coco timber
Desiccated coconut
Copra
Copra oil
'irgin coconut oil 6'CO7
Coconut mil* 6cream
and
light7
Bottled palm +ine
Coconut vinegar
Brooms
Shell charcoal
Coco&+ood Furniture
,a*uti
Coco&peat
Coir )bre and ropes
Door mats
Body lotion and cream
Soap
Lamp shades
Arte"act
T#%a0
Pr#.u"% <$-%& #4 V#0um( #4 Buy-$/ C#&% #4
O%3(r .-r("%
"#&%&
Tra.( (,/, <$-%& %ra.(. C#&% )(r %ra$&)#r% (,/, &%#ra/(,
)-("(&, )(r m#$%3 u$-% )a"2a/-$/,
)r()ara%-#$
Immature nuts
,ature nuts
(oddy 6palm +ine7
$us*s
Fibre
<ood
)-("(&, )(r m#$%3 u$-% )a"2a/-$/,
)r()ara%-#$
,a*uti
Desiccated coconut
Copra
Copra oil
Coco timber
Desiccated coconut
Copra
Copra oil
'irgin coconut oil
Coconut mil* 6cream
and light7
Bottled palm +ine
Coconut
vinegar
Brooms
Shell charcoal
Coco&+ood Furniture
,a*uti
Coco&peat
Coir )bre and ropes
Door mats
Body lotion and cream
Soap
Lamp shades
Arti"act
T#%a0
20. <hat sales channels do you use and +hat prices are realised through
each channelN
Pr#.u"% u$-%& &#0. <$-% <$-%& <$-%
u$-%&
S#0. <$-% <$-%& <$-%
%# Pr-"( &#0. %# Pr-"( %# Pr-"(
E?)#r%(
. Pr-"(
-$.-'-.ua0
& #%3(r
)r#"(&&#r
&
%ra.(r&
Immature nuts
,ature nuts
(oddy 6palm +ine7
$us*s
Fibre
<ood
,a*uti
Desiccated coconut
Copra
Copra oil
Coco timber
Desiccated coconut
Copra
1. 8&o#e nut
The fresh mature coconut is sold as a whole nut in both local and export markets. Instead of
processing the whole nut, actors (mainly local farmers and traders) in this value chain sell it direct
to consumers. At the coastal strip of Kenya fresh mature coconut has been used for food for
decades. The fresh mature coconut is sometimes de-husked and sold to vendors who then take it
to the market. Notably, once the whole coconut (could be mature or immature) is sold it is can be
re-directed to other value chains to produce oil, desiccated coconut, by-products, etc.
Thus, in some cases it is difficult to separate this shortest value chain from the processing value
chains.
Mature nuts are a key ingredient in preparation of various home dishes whereby the inner flesh is
utilized. Kwale and Kilifi counties dominate the production of mature coconuts with 46% and
44% of the total respectively, while about 10% comes from all other counties. Over 60% of all
mature nuts are sold to traders who then supply coconut processing factories.
2. Desiccated coconut coconut !ate" and "e#ated $"oducts
Tender coconuts known as madafu are harvested at 7 to 8 months maturity and are valued for their
sweet water and gelatinous kernel. They are used fresh immediately after harvest by cutting off
the edge of the nut and drinking the sweet water with a straw. The madafu have a short shelf life
and start deteriorating within 24 to 26 hours after harvest, so they tend to be consumed close to
their place of production. Kwale, Kilifi, Mombasa and Taita counties are the largest producers of
madafu and respectively account for 55%, 27%, 11% and 5% of all the madafu produced in
Kenya.
Simple processing technologies exist to convert the coconut kernel into products that can be
consumed by the families of coconut farmers or sold into the domestic market to increase
farmers income! %hese products include coconut water, coconut milk, cream, powder, and flour,
and desiccated coconuts.
Coconut water occupies the center of the coconut kernel. It contains sugar, dietary fiber, proteins,
antioxidants, vitamins, and minerals, and provides an isotonic electrolyte balance. It is consumed
as a refreshing drink throughout the humid tropics, and is gaining popularity as a sport drink.
Mature fruits have significantly less liquid than young, immature coconuts, barring spoilage.
Coconut water can be fermented to produce coconut vinegar.
Coconut milk is obtained primarily by pressing the grated coconut's white kernel or by passing
hot water or milk through grated coconut, which extracts the oil and aromatic compounds. It has a
fat content around 17%. When refrigerated and left to set, coconut cream will rise to the top and
separate from the milk. Coconut milk can be further processed by fermentation into Nata-de-
coco, a white, gelatinous and chewy product that can be sweetened by boiling in a sugar solution.
Coconut milk is also used to produce virgin coconut oil.
<. Coconut oi#
The most commercially important product of coconut is the oil obtained from its kernel. Coconut
oil contributes nearly 7% of the total vegetable oils traded in the world. The volume of coconut oil
produced in the world in 2013 was estimated at over 3.5 million metric tons, with the Philippines
(1.725m), Indonesia (0.974m) and India (0.447m) being the three largest producers.
Coconut oil is extracted from the dried coconut kernel (copra) using mechanical expellers or
solvent extraction. After extraction, the oil is unsuitable for human consumption and must be
refined, bleached and deodorized, hence its designation in general trade as RBD coconut oil.
&lthough there is no industry standard definition of 'irgin (oconut )il ('()*, it can only be
obtained from fresh coconut kernel using a quick drying method or through a wet milling process.
Traditionally, the wet milling process has been used to produce a VCO of very high quality
because of the high level of antioxidants that it contains.
4. Coconut '62$"oducts
The processing of coconut to produce coconut water, coconut milk, copra and coconut oil
generates by-products that can be converted into other products that have great commercial value.
These by-products are the husks, the kernel shells and the coconut kernel cake.
Coconut husks are rich in fiber known as coir and are the raw material for the coir industry; they
are used in ropes, mats, door mats, brushes, sacks, caulking for boats, and as stuffing fiber for
mattresses. They can find a valuable use in potting mix (known as coco peat) for the horticultural
industry. Through incomplete burning, coconut husks and shells can be converted to charcoal
briquettes or activated carbon of high quality for the removal of impurities. Coconut shells are a
The cake resulting from the extraction of oil is known as coconut kernel cake or copra meal. It is a
good ingredient in dairy rations as a source of energy and protein, but its high fiber content makes
it unsuitable for monogastric animals. A 10% inclusion rate or 1.5-2 kg/d is recommended as the
maximum safe level for cows.
4. Coconut *$a#=, !ine and "e#ated $"oducts
When an incision is made in the flower clusters of the coconut, a sweet sap (sugar content up to
16%), also known as toddy, is obtained. When left to ferment on its own, it becomes coconut
wine, which can be distilled to produce a strong alcoholic drink.
Boiling the sap produces a sweet syrup or candy that can be processed further to yield coconut
sugar also referred to as palm sugar. A well-maintained tree can produce around 300-400 liters of
toddy per year.
6. Coconut !ood and #ea%es
The stiff mid-ribs of coconut leaves are used for making brooms. The leaves also provide material
for woven baskets and for roofing thatch; they can also be woven into mats. Coconut trunks are
used for building small bridges, huts and even houses; they are preferred for their straightness,
strength, and salt resistance, and are increasingly being used as an ecologically sound substitute
for endangered hardwoods.
6.< Cont"i'ution o- Di--e"ent Coconut 9a#ue C&ains to t&e Su'2secto" GD.
The average contribution of different value chains to coconut production, export and import
monetary values is used as a proxy to their contribution to the subsector GDP (Table 6.1). Thus it
is assumed that production, export and import activities contribute equal shares to the subsector
GDP, though, as expected production is likely have a higher share due to the relatively higher
contribution to rural employment and support to manufacturing activities in the country.
Following this assumption coconut oil value chain emerges as the main contributor to subsector
GDP (36.1%), followed by whole coconuts (25.5%), palm wine and related products (19.7%) and
by-products (8.6%). The latter comprises one of the major value chains in terms of imports
(only second to coconut oil value chain) and exports (only after whole coconut and coconut
value chains). The by-products considered here are mainly processed into coco peat and other
composts, animal feeds and handicrafts. Most of them are sold mainly to flower producers,
construction industry, livestock farmers and tourists.
Ta'#e 6.1( .e"cent Cont"i'ution o- Di--e"ent 9a#ue C&ains to Coconut Su'secto" GD.
9a#ue c&ain > do=estic > e/$o"t > i=$o"t %a#ue Assu=ed >
$"oduction %a#ue cont"i'ution
%a#ue to su'secto"
GD.
1. Whole coconut 22.1 54.1 0.3
=0.0
2. Desiccated coconut,
coconut water and 2.1 7.6 3.9 4.0
related products
3. Coconut by-products NA** 14.4 11.5
@.9
4. Coconut oil NA 23.9 84.3
;9.2
5. Coconut (palm) wine
59 NA NA
25.:
and related products
6. Coconut wood and
16.8 NA NA 0.9
leaves
Total 100.0 100.0 100.0
100.0
Source: adapted from KCDA, 2013 NA = data not available
**In estimating the average percentages in the last column the missing values are assumed to be zeros
With the exception of the whole nut and desiccated coconut, coconut water and related
products, the percentage contribution of each value chain to the subsector GDP is used as the
criterion for apportioning the Master Plan budget. For instance, the coconut oil value chain is
allocated the 36.1% of the total Master Plan budget. For the budget allocation to the whole nut
and desiccated coconut, coconut water and related products value chains, it was considered that
most of the whole nuts sold in the market eventually end up being processed into other
products. Moreover, this Master Plan places more emphasis on value addition than sale of
whole nuts. Thus it was considered appropriate to exchange proportions of budget allocations
of these two value chains.
This consideration resulted in whole nut and desiccated coconut, coconut water and related
products value chains being allocated 4.5% and 25.5% of the Master Plan budget respectively.
6.4 T&e Ro#e o- Indi"ect Acto"s
The indirect actors considered in the Master Plan are divided into value chain enablers (e.g.,
government and its research and extension departments) and value chain supporters (finance
institutions, agro-dealers, farm implement suppliers, machinery suppliers, etc.) that contribute to
the successful flow of product through the different value chains. These play a critical role in the
successful functioning of the value chains. In addition to providing farmers with key inputs such
as new seeds and seedlings, extension services, human capacity services, etc., government and its
related institutions also establishes, monitors, and enforces rules, regulations, and policies
regarding quality standards. Credit institutions and some NGOs also provide some of the much
needed capital to farmers, traders and processors in these value chains. Similarly, the agro-dealers,
and other input/machinery suppliers are important linkages to the value chain actors and cannot be
ignored when promoting the sub-sector.
6.4 Cu""ent and E/$ected Situations o- t&e 9a#ue C&ains
6.4.1 8&o#e nut %a#ue c&ain
Cu""ent situation
The prices of the whole nut in the country have been low (average of KES 13.7 per kg) and
mainly depend on the seasonality of the crop. About ten years ago when the interest in the
industry was at its lowest, farms were virtually abandoned and a kilogram of coconut fetched less
than KES 6. This however changed with the entry of the Tanzanian traders and the formation of
KCDA. The Tanzanians have made the prices to move from KES 6 to KES 16 per kilogram
(Figure 6.3). Most Kenyans however do not consume the whole nut and therefore local prices are
lower than export prices. Although most of the whole nut is latter processed into other products,
focus is placed on selling of the whole nuts only as value addition and by-products have been
identified as different specific value chains. Thus this is the shortest coconut value chain in the
subsector.
Currently, this value chain earns the highest income for farmers. In 2012, about 3.39 billion nuts
were sold, earning farmers and traders approximately KES 2.9 billon. For the country whole nut
has also been the leading subsector export commodity in terms of value, accounting for over 54%
of all coconut exports. About 61% of the nuts are sold to traders who probably later channel them
to the processing value chains.
Fi+u"e 6.<( 8&o#e Coconut 9a#ue C&ain
(he Coconut Farmer
By&products
,ature Fresh C <hole
29
Fresh ,ature Coconut (rader
=1
Local ,ar*et "or
Fresh >/port ,ar*et "or Fresh
'alue
addition
and
processing
,ature Coconut ,ature Coconut
;1 41
C#$&um(r& #4 Fr(&3 1a%ur( C#"#$u%
---------------- Not part of the chain
Numbers represent prices in KES/kg
Source: own presentation
E/$ected Situation
Production
Although coconut production for this value chain is projected to increase by 5% annually, this
Master plan will endeavor to maintain the current sales of fresh coconuts as extra nuts will be
channeled to value addition chains. Thus the percentage contribution to exports and subsector
GDP of this value chain is likely to decrease as investments in coconut processing increase. All
imports of whole nut will be eliminated by 2018 as there will be enough fresh coconuts in the
country.
Marketing and distribution of whole nuts
With increased coconut production, more local, regional and international markets will be
explored. The expanding East Africa Community market where members are allowed to trade
freely across the boundaries will be exploited. Expansion of international markets will target UAE
and USA among other countries.
Value chain Enablement
Research on new coconut varieties and particularly hybrids will be up-scaled in order to increase
the fresh coconut production. New high yielding, early maturing and drought resistant coconut
tree varieties are expected to be introduced to farmers in major coconut growing areas. More
coconut seedlings will be grown and nursery operators increased. Farmer cooperatives will be
established in order to increase the bargaining power of producers at the marketing stage. Farmer
demonstration plots will be introduced to exhibit possible agronomic practices that farmers need
to undertake to increase coconut yields. Some of the organizations that will help farmers and
traders are KCDA, KALRO and county governments.
Value chain support
Coconut producers and traders will be made to access more funding from banks and credit
institutions. These funds will be used to enhance fertilizer application and increase number of
nursery operators, and support agronomic activities. Coconut development fund will also be
established to avail more funds to farmers and coconut traders.
6.4.< Coconut oi#
Copra is very easy to process at the cottage level. It is currently being processed by farmers and
sold directly as copra oil. However, local prices are low due to the poor quality. Currently the
price of copra at the farm level is about KES 40/kg (Figure 6.5). To many farmers, it makes more
business sense to sell the dry nut even at the lowest price of KES 8/kg. Despite these challenges,
in some instances, traders amalgamate their coconuts and crush them into copra and sell direct to
the millers. About 8 main industries that used to deal in copra before 2006 have closed down and
those in operation are now largely dependent on imported palm oil from Malaysia. Some also buy
dry nuts and produce copra at the factory level. Some of the companies still processing Copra oil,
but at a small scale, are Amua, Serendi, Kentaste, and Malindi Industries.
The process of making virgin coconut oil (VCO) demands that the source of raw coconut is
carefully controlled. This is done in order to have the finished product comply with the strict
international standards that favor organically produced nuts. The nuts selected for virgin oil
production fetch higher farm gate prices than those sold for other uses. Currently, a number of
firms are making their entry into processing VCO and are heavily engaged in contracting farmers
who have to meet certain agronomical standards.
The oil produced is sold directly to end users and other manufacturers who use it as raw materials
for cosmetics, cooking oil, soap, pharmaceuticals and other products. At the moment there are just
a handful of virgin coconut oil producers that are exporting their products. These include Navida,
BICODE, Kentaste and Serendi (K). Approximately 30% of what these firms process is sold
locally and the rest is exported mainly to Europe and USA. Currently Kenya is a net import of
virgin coconut oil though it is processing approximately 35 tons annually. According to Figure
9.5, these processors derive more income/benefits than producers participating in this value chain.
:i+u"e 6.4( Coconut Oi# 9a#ue C&ain
Copra
(he Coconut
Coconut
Farmer
41 29
Coconut
(rader
Copra
(rader
=1
Copra
=1
(rader
4=
4=
Copra Oil 'irgin Oil
Processor Processor
Crude 'irgin
Oil
Coconut
Oil
291 911
Crude Oil 'irgin Oil
2=1 :01
==
1
F##. a$. $#$>4##.
ma$u4a"%ur(r&@
Coo*ing oil- "ood ingredients- cosmetics- soap-
body @11
oil- hair and spa products
;11 24@ 2=11
Coo*ing Oil
(rader
Soa
p Cosmetic Other
401 2@@ 2911
C#$&um(r& #4 C#"#$u% #-0 A C#"#$u% O-0 Pr#.u"%&
Numbers represent prices in KES/kg
Source: own presentation
By&products
e.g.- $us*s
E/$ected Situation
Production
It is expected that farmers will produce enough nuts for processing products of this
value chain. Approximately 17 nuts are usually required to extract a litre
(approximately 1 kg) of coconut oil. The weight of an average piece of coconut is about
0.8 Kg. Thus 13.6 kg of nuts are required for the production of 1 kg of oil. In the
country, the amount of coconut oil currently being imported is 4,659,415 Kg (KCDA,
2013). This is the amount targeted to be produced by local processors by 2018.
However, it is important to note that the demand for oil will continue to rise due to
population increase, lifestyle changes and increased preference for health foods such as
coconut oil. It is assumed this increase will be 5% per year.
To offset the current annual coconut oil imports by 2018, farmers will be expected to
increase their produce gradually and eventually achieving 76,041,652.80 kg or
95,052,066 pieces of coconut by that year. This converts to a total of 1,357,886.66 trees
(assuming that a single tree produces 70 nuts per year) for coconut oil only. If this trend
is maintained the country will even be exporting some surplus coconut oil by 2019
(Table 6.3).
Ta'#e 6.<( ."o?ection o- E/$ected ."oduction o- Nuts and Oi# *201422013,
2014 2014 2016 2015 2013 201@
1. Mature trees
harvested 452,629 678,943 905,258 1,131,572 1,357,887 1,584,201
2. Amount of nuts
processed (pieces) 31,684,022 47,526,033 63,368,044 79,210,055 95,052,067 110,894,077
3. Amount of nuts
processed (kg) 25,347,218 38,020,826 50,694,435 63,368,044 76,041,653 88,715,262
4. Oil produced
464@414 and sold (kg) 1,863,766 2,795,649 3,727,532 5,591,298 6,523,181
5. Oil imports
(kg) 4,892,386 5,137,005 5,393,855 5,663,548 5,946,725 6,244,062
6. Oil imports less
oil produced in kg
(5-4) 3,028,620 2,341,356 1,666,323 1,004,133 355,427 - 279,119
The oil produced and sold in 2017 is the current import volume (see KCDA, 2013)
Source: own projection
Processing
The extraction of the coconut oil is a complex process which requires use of various technologies.
It is therefore expected that by 2018 processors will have formed common interest
groups/associations to scale up oil extraction to medium and large scale levels and to increase
their bargaining power. They will be expected to produce 5,591,298 kg of oil by this year (see
Table 6.3). It is therefore expected that they will be accessing machinery for medium scale and
large processing depending on the size of the group. Through support from financers or creditors,
processors or processor groups will be expected to acquire a set of machinery which has a
screening machine, boiler, digesters, press, clarifier and generator. This machine produces 0.5 tons
of coconut oil/hour. Large scale processors could acquire a refinery which would comprise
elements such as hammer mill, bucket elevator, screw press and conveyor, centrifuge, vibratory
sieve, micro filter, filtered oil storage tanks, crude coconut oil tanks and volumetric filling
machine. The refinery produces 1 ton of coconut oil/ton.
Distribution and Marketing
The coastal region serves as the main coconut oil consumption area due to the tradition of relying
on coconut products. Thus most of the coconut oil will be distributed in this region. To expand the
market, awareness creation of the nutritional value of coconut oil and its health benefits will be
done in other parts of the country. For the sale of the surplus, additional markets will be explored
in Uganda, Tanzania, Rwanda, and Ethiopia. Some of the strategies to be used to increase sales
and consumption of coconut oil and its products will include advertisement in print media, TVs,
radios, road shows and trade exhibitions. Quality coconut oil will also be promoted in foreign
markets (mainly through trade shows) in order to capture emerging markets in the European
Union and sub-Saharan Africa.
Value chain enablement
Farmers, processors and traders will be mobilized to form cooperatives/associations to facilitate
training and accessibility of external resources such as credit. Through private-public partnerships,
a standard for coconut oil will be developed. Awareness creation of coconut oil standard will be
done through workshops, brochures, pamphlets, local print media, radio and TVs. This will be
done to enhance harmonization of local, regional and international trade of
coconut oil and its acceptability. Government institutions will also be involved in
setting up demonstration models for farmers and processors in order to enhance
transfer of necessary knowledge and thereby increase productivity of the value
chain.
It is expected that KCDA and KALRO will build capacity of farmers and
processors by enabling them to access quality seeds and oil processing machinery.
KEPHIS is expected to test the quality of coconut seedlings in order to ascertain
that they are of the high quality and eliminate any risk of pest and diseases. KEBS
is expected to ensure maintenance of quality of coconut oil and train processors
on proper packaging in order to attain the desired internationally accepted
standards. The organization will also be involved in providing quality standard
stickers to processors in order to promote regional and international marketability
of the coconut oil products. Infrastructure conditions in the production and
processing areas will need to be improved in order to facilitate coconut
transportation and also enhance marketing of coconut oil in both locally and
regional markets.
Value chain Support
Credit services from banks, farmer cooperatives, NGOs and other organizations
will be required to promote coconut oil production. Input suppliers such as
nursery operators, agro-chemical and fertilizer traders will be provided with
necessary incentives in order to enhance input accessibility by farmers. In
particular, the government will be advised to continue providing subsidized
fertilizers to coconut farmers. Coconut tree nurseries will be increased in number
as demand for seedlings increase.
6.4.4 Coconut '62$"oducts
Coconut by-products considered in this value chain include shell, husk
(coir/firbre) and cake. The husk will be used to process coco peat and copra cake
(also referred to as coir pith, coir fiber pith, coir dust, or simply coir).
Cu""ent Situation
The current technology of processing coir fibre involves mechanical extraction of
fibre from the husk using a decorticating machine. The fibre is then classified into
three classes: the long, medium and short fibre. Coir fibre is of much value
because of its natural resilience, durability, resistance to dampness and anti-
termite characteristics.
The current biggest market in Kenya for coir fibre is the Prisons Department.
There are efforts to expand the local market to include manufacturers of
mattresses, mat weavers and car upholstery manufacturers. Some stakeholders are
also exploring weaving of geo-textiles. These will target greenhouse farmers, dam
and road constructors (for use in the prevention of soil erosion), and sport stadia
management (growing grass in stadia). The price of the fibre ranges from KES
15-40 per kg depending on the nature of the final product (Figure 6.6).
Coco peats market share of plant growing media (coco peat, peat moss, etc.) in
Kenya amounts to approximately KES 120 million. Currently the country imports
coco peat amounting KES 94 million annually. However, the country has also
annual imports of about KES 5 million (KCDA, 2013). The demand for coco peat
has been increasing due to environmental concerns in the flower industry. To-date
most flower producers are using biodegradable products and coco peat is one of
them. Thus the Kenyan flower industry is the main consumer of this product. As
Figure 6.6 indicates processors of coco peat have higher benefits than other actors
in the value chain.
:i+u"e 6.6( Coconut A62."oducts 9a#ue C&ain
Coconut
Fresh
Coconu
t "or
Other
Kses
Coconut
Peat
Bloc*
@1
(he Coconut Coconut
'irgin
Coconut
Oil
Farmer
Copra Oil
Processor
Coconut
$us*s
@
4
Coconut $us*
(rader
Copra Ca*e
(rader
21
9
Coconut $us*
Processor
Consumers o" Coconut Copra
Ca*e 6Farmers etc7
Coconut Coir
Fibre
;9
Coco Peat Bloc* (rader Coconut Fibre
(rader
221 41
Flo+er O Seedling
!ro+ers
Numbers represent prices in KES/kg
Source: own presentation
Co$"a CaBe
Producers o" mats- car upholstery- Do+er
holders- chairs etc
The copra cake is important as an ingredient of animal feeds. Currently the level of production is
very low due to low processing capacity and competition with other animal feeds. In particular,
demand for copra cake in the coastal region where most of the coconut is produced is very low.
E/$ected Situation
De-husking and processing
The production of coconut by-products through de-husking and processing is expected to increase
and offset imports by 2018. This is because more coconut oil, desiccated coconut and coconut
milk products will increase whose by-products will form the raw materials for this value chain.
This means that as the volume of processed fresh coconut increases, more husks (coir/fiber), cake
and shell will be produced. Among the by-products produced, cocopeat is expected to be
prioritized due to the high local demand in the flower industry.
The by-products will be processed at all levels: local (household), medium (mainly individual
entrepreneurs and small groups) and large scale (large companies) levels. Machinery for washing,
heat-treatment, screening and grading will be availed in the market and full accessibility is
expected to be achieved by 2016.
Marketing and distribution channels
Local, regional and international markets will be targeted. Emerging regional markets in Burundi,
Rwanda, Uganda and Tanzania will be identified. Awareness will also be created through
continuous advertisements in order to reach more consumers in different parts of the country.
Value chain enablement
Research will be done on the awareness of and perceptions on locally processed by-products.
Other forms of research to be conducted will be on achievement of zero waste and its linkage to
climate change. Trade and road shows will be conducted to promote the by-products in the local
markets. Storage yards for the husks (fibre/coir), shells and cakes will be constructed through
public-private partnerships. Farmers will also be mobilized and trained on local processing of the
by-products in their farms.
9a#ue c&ain su$$o"t
Besides benefiting from financial and credit service providers, this value chain will need support
from non-governmental organizations and other private sector players involved in capacity
building of actors in the coconut industry. This will help in improving skills of processing coconut
by-products.
6.4.4 Coconut *$a#=, !ine and "e#ated $"oducts
Wine production involves tapping, fermentation and marketing. Over the years, toddy demand
has been constant while supply has been dependent on the rainfall patterns. During the rainy
season, toddy production is generally low. The production steadily rises as the long rains
subside. The low production level during the rainy season increases the demand, pushing toddy
prices upwards, while during the high toddy production season supply is higher than demand.
This at times leads to post harvest loses and poor prices at the farm level.
Cu""ent Situation
Coconut wine (toddy) is regarded as one of the main traditional products of the coconut tree. In
some cases it is viewed as controversial product (mainly after fermentation) and therefore
embroiled in traditional, faith-based (religious) and legality issues. Toddy is tapped by special
traditionally skilled people who are paid about KES 50/kg. The traders (middlemen) sell it at
KES 100/kg. It then retails at KES 150/kg (Figure 6.7). It is estimated that there are over 6,500
toddy pubs (Mangwes) in the coastal region. On average each Mangwe sells an average of 60
litres or kgs of toddy per day.
In 2012, approximately 153,311,377 litres of toddy were produced and sold at a total value of
7,236,523,322 (KCDA, 2013). KCDA has made efforts to modernize the distribution and
consumption of toddy through legislation and regulation, though not everything has been
streamlined. The toddy pubs (Mangwes) are required by legislation to meet certain minimum
hygiene standards before they are licensed to operate. However some operators have failed to
comply.
9
4
Regarding the coconut sap or sugar syrup, there are no commercial quantities being tapped despite
the huge potential for income generation from this activity. The main hindrance has been lack of a
consistent market for sugar syrup. However, there is some tapping done by individual households,
mainly for home consumption.
:i+u"e 6.5( Coconut Todd6 9a#ue C&ain
(he Coconut
Farmer
(apped (oddy
01
(oddy (raders
211
(oddy Clubs C Bars
201
C#$&um(r& #4 )a0m 7-$(
Numbers represent prices in KES/kg
Source: own presentation
E/$ected Situation
Since palm wine is neither exported nor imported, it is difficult to predict the production level to
be achieved by 2018. Thus, pessimistically, it is recommended that the current production level
be doubled by 2018.
Ta$$in+
To double the current production level by 2018, farmers are expected to be equiped with better
tapping skills. Thus they are expected to be trained on important practices like how to make
incisions on coconut trees and how to cut the flourescent from the base in order to prevent toddy
from clogging. Farmers will also require training on good agronomic practices such as regular
weeding, application of manure/fertilizers as well as pests and disease control. The focus will be
to scale up the current tapping that uses few specialized tappers to large scale tapping that will
rely on a pool of well trained individuals who will be employees of brewing companies. These
companies are expected to initiate long term tapping contractual agreements with farmers.
:e"=entation
The fermentation of toddy will be scaled up as the process will be done at the factories and not at
homesteads or Mangwes. Toddy will be distilled to yield high quality alcoholic drinks with high
nutritional value and sold at premium prices. It is expected that through public-private
partnerships equipments such as distillers, stabilizers, coolers, storage and packaging machines
and bottles will be accessed by palm wine investors.
;a"Betin+ and dist"i'ution
With large brewing companies being involved in the industry, more local markets at the Coast
region and in other counties will be reached. It is expected that regional markets within the East
Africa Community such as Tanzania, Burundi and Uganda will be more important. Kenya alone
has a lot of potential for wine consumption as Nairobi, Kisumu, Nakuru, Thika and Eldoret have
large populations that can consume palm wine. It is expected that palm wine will be promoted
and marketed alongside other local brews.
9a#ue c&ain ena'#e=ent
Standards on the production, fermentation, packaging and marketing of palm wine will be
developed in order to establish sanity in the palm wine industry. Research on soil structure and
pH level will be done to determine areas that would produce the best toddy for fermentation and
subsequent processing into palm wine.
Farmers in common interest groups will be empowered through training and enabled to
establish long term contractual agreements with brewers. Creation of awareness of the palm wine
as an alternative alcoholic drink will be done in different regions of Kenya and in neighboring
countries. Palm wine will also be registered with NACADA as an alcoholic drink in order to
increase its marketability and acceptability locally and regionally. Through workshops and
seminars police and local people will be educated on the differences between palm wine and
local brews.
9a#ue c&ain Su$$o"t
Companies and common interest groups/associations interested in establishing brewing factories
will facilitated to access credit from the Coconut Development Fund and other sources at
affordable interest rates. Alternatively, credit from local microfinance institutions (MFIs) will be
availed to farmers at affordable interest rates to enable them to start toddy fermentation
businesses. Such credit providers will be KCB, Cooperative and Equity banks, among other
finacial institutions that have shown interest in supporting agribusinesses. Other support
institutions will included NGOs such as MESPT which will capacity build farmers to enable
them venture into wine production.
6.4.6 Coconut 8ood and Lea%es
The coconut trunk is harvested for wood after the tree has outlived its productive economic life, in
terms of nut and toddy production. This is normally done after about 60 years. The distinctively
patterned timber coco wood is used to make handicraft, traditional utensils, furniture and other
household items. The timber trunks are used in construction and particularly as a flooring
material. The leaves are harvested for making brooms as well as roofing materials commonly
called makuti, which are ideal thatching materials in hot areas.
T&e Cu""ent Situation
+ith a high demand for timber and makuti, there has been indiscriminate logging
that does not select the senile or unproductive trees. ,articularly with makuti,
some farmers have started harvesting leaves and drying them under the sun
instead of waiting for them to fall off the trees.
&t an average price of #-. /0!12 per piece of makuti, it is estimated that farmers
earned about #-. /!3 billion in 02/4! (urrently the production level of makuti
stands at 132 million pieces annually.
The brooms made from coconut leaves however face stiff competition from those
made from other materials. The wood fetches approximately KES 1200 per piece
at the farm gate level (Figure 6.8). Currently it is commonly used to make
furniture and traditional artefacts which are sold mainly to tourists.
E/$ected Situation
This value chain will involve production, processing and marketing stages. If
well-structured and promoted it has potential to generate high income for the
actors and create employment for youths involved in the construction industry.
However, promotion of this value chain has to be handled cautiously as it can lead
to destruction of productive coconut plantations if harvesting of wood and leaves
is not regulated.
:i+u"e 6.3( Coconut 8ood and Lea%es 9a#ue C&ain
(he Coconut
Farmer
,ature Coconut (reesO
Leaves
(ree (run*
2111
Coconut (ree (run*
(raders
2=11
Coconut ,aterial <or*shops
6Furniture- tiles- arti"acts7
Arte"acts Furniture (iles
2011 4111
2:11
Coconut
Leaves
20
Coconut Leaves
(raders
=0
Coconut Leaves
<or*shops
6,a*uti- brooms7
,a*uti Brooms
01 ;1
C#$&um(r& #4 C#"#$u% ;##. a$. L(a'(& Pr#.u"%
Numbers represent prices in KES/piece
Source: own presentation
."oduction and $"ocessin+