It is against this background that an economic analysis of the viability of this enterprise is done here under. Only a few entrepreneurs however, are capitalizing on this opportunity due to several factors such as lack of rigorous economic analyses and unavailability of information on market opportunities. Virgin coconut oil (VCO) has a high local demand as well as high export market potential. Whole nut Coconut products and b y-products in Kenya The coconut industry in Kenya has been taking a deliberate shift to value-added products like Virgin Coconut Oil (VCO), Coconut milk, Coconut powder, Desiccated coconut, Coconut water, Coir and coir-based products, Coconut shell charcoal/activated carbon among authors to increase export income. Subsector is important as a source of processed edible oil, animal feed and industrial oil.The scheduled nuts and oil crops in Kenya include coconut, Cashewnuts, Macadamia, Oil palm, Sunflower, Sesame, Castor, Canola, Peanuts, Bambara nuts, Sunflower, jojoba, linseed (flax seed).The aggregate increase in supply has generally increased activity in the sub-sector-awakened value addition, replanting (total of 2million seedlings planted since 2010).There are two nuts production seasons in Kenya - low(April-October): low supply, high demand, high prices high (November -March).Production of nuts per tree stands at 50 - 75 pcs per tree.The coconut tree can produce more than 100 products however Kenya produces 20 products due to limited research on value addition & product development.Industry contribution is 0.4% of total National GDP Value and 1.5% of the Agriculture sector GDP contribution.The coconut sub-sector has a potential national aggregate value of KES 25 Billion annually only about KES 13 Billion (52%) value is being exploited.
Coconut sub-sector is made up of 10 million trees, covering 82,921 ha supporting about 95,000 households.Mandate: develop, promote and regulate the Nuts and Oil crops industry in Kenya.
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