Kenya’s palm oil imports to hit 1.05 million tonnes in 2025/2026: USDA

KENYA – Kenya is on track to reach a new milestone in palm oil imports, with projections indicating a total of 1.05 million tonnes for the 2025/2026 season.

This increase highlights Kenya’s notable dependence on palm oil, which accounts for over 90% of the nation’s total oil and fat consumption.

Due to minimal local production, Kenya remains heavily reliant on imported palm oil to satisfy rising demand from households, foodservice outlets, and industrial manufacturers.

According to the U.S. Department of Agriculture (USDA) projections, Kenya’s palm oil imports are expected to reach 1.05 million tonnes during the 2025/2026 season.

This volume comes close to the 1.1 million-tonne peak recorded in 2020 and would mark one of the highest import levels ever for East Africa’s largest economy.

The U.S. Department of Agriculture (USDA) attributes the rise in palm oil imports to Kenya’s growing population and expanding consumption habits among households and food service businesses, placing the country among the world’s top eight importers of the commodity.

A significant portion, approximately 90%, of Kenya’s palm oil imports consists of crude palm oil (CPO), which is favoured by local industries for refining and benefits from preferential tariffs.

Credited by the USDA, Malaysia has emerged as the dominant supplier, accounting for 90% of Kenya’s palm oil imports since 2021, a sharp increase from just 19% in 2019.

This shift is primarily due to Malaysia’s competitive pricing and export-focused strategy, particularly as Indonesia, once a major supplier, scaled back its exports amid rising domestic demand and tighter restrictions in recent years.

Kenya’s strategic role in the region is a significant factor in its high import volumes. The country, serving as a regional hub, re-exports approximately 10% of its refined palm oil to neighbouring nations, including Uganda, Rwanda, and the Democratic Republic of Congo.

This logistical advantage reinforces Kenya’s position as Africa’s second-largest palm oil importer after Egypt.

Despite concerns over the environmental and health impacts of palm oil, its affordability and versatility continue to drive demand.

Industry analysts suggest that unless local production is developed, Kenya’s dependence on imports will persist, particularly as urbanisation and economic growth fuel increased consumption.

As the 2025/2026 season unfolds, stakeholders across the supply chain, from importers and refiners to retailers and consumers, will be closely monitoring the potential impact of the record-setting import forecast on the local economy.

The record-setting import forecast not only underscores Kenya’s economic dynamics but also highlights broader trends in global commodity flows and regional trade integration.

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