Malaysia to relocate regional palm oil office to Kenya, pledges technical support to boost local production
KENYA – In a move poised to reshape Kenya’s palm oil landscape, Malaysia has announced plans to relocate its regional palm oil office for sub-Saharan Africa from South Africa to Nairobi and pledged extensive support for the East African nation’s nascent palm oil sector.
The announcement was made by Malaysia’s Minister of Plantations and Commodities, Datuk Seri Johari Abdul Ghani, during an official visit to Nairobi from May 6 to 8, 2025.
Speaking to local media, the minister emphasized Malaysia’s commitment to enhancing trade ties with Kenya and supporting the country’s ambitions to develop its local palm oil production capacity.
“We are moving our regional office to Nairobi. This will facilitate access to support for local stakeholders and enable them to resolve their concerns more quickly,” said Minister Ghani.
He reiterated that, if Kenya wants to develop its own production, theMalaysian government is ready to support it.
“We can host Kenyan farmers in Malaysia for training, provide superior seeds, and help them create a processing ecosystem,” he added.
Malaysia is the world’s second-largest palm oil producer after Indonesia. Its decision to relocate the regional office underscores Kenya’s strategic importance in Africa’s palm oil trade. Kenya is currently the continent’s second-largest importer of palm oil, trailing only Egypt.
In the 2024/2025 marketing year, the U.S. Department of Agriculture (USDA) projects that Kenya’s palm oil imports will rise by 23% to hit 1 million metric tonnes, reflecting the nation’s rising consumption and dependence on the commodity.
The value of these imports is significant. Based on prevailing global average palm oil prices of approximately US$900 per tonne, Kenya could spend over US$900 million on palm oil imports this year.
Yet, despite its heavy reliance on imported palm oil, Kenya’s domestic production remains minimal. Palm cultivation is still at an experimental stage, primarily in a few western counties, Vihiga, Kakamega, Busia, and Bungoma, and along the coastal regions of Lamu and Kwale.
To accelerate local production, Kenya’s National Agriculture and Livestock Research Organization (KALRO), in partnership with the Agriculture and Food Authority (AFA), produced 100,000 oil palm seedlings in 2023.
These efforts are expected to ramp up significantly, with plans to distribute an additional 2.5 million seedlings to farmers by 2026.
“The partnership with Malaysia could provide the catalytic push needed to move palm oil from an experimental crop to a viable commercial venture in Kenya,” said agricultural economist David Ochieng of Egerton University.
“With proper training, improved seed varieties, and investment in infrastructure, Kenya could reduce its import bill and create rural employment opportunities, “he added.
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