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New coconut processing plant in Lamu opens a reliable market for 5,000 farmers
February 13th, 2026
More than 5,000 coconut farmers in Lamu County now have a guaranteed buyer for their produce, following the commissioning of a coconut processing plant on Friday, 13th February 2026.
The facility, built by Kentaste Products Limited with seed funding from the UK Government’s Sustainable Urban Economic Development (SUED) Programme, is expected to create over 90 full-time jobs, most of them for young people and women.
H.E. Issa A. Timamy, EGH, OGW, Governor of Lamu County, officiated the commissioning ceremony, which brought together national and county leaders, representatives of the British High Commission, development partners, community members and private sector players.
“By adding value to our coconut sector here at home, we are creating jobs, strengthening farmer incomes, and positioning Lamu as a competitive agro-processing hub,” the Governor said. “This investment reflects what is possible when county leadership, development partners, and the private sector work together.”
The plant is expected to strengthen local agricultural value chains and retain more economic value within the county, in line with Lamu’s plans to diversify its economy through agro-processing.
The UK Government, through the Foreign, Commonwealth & Development Office (FCDO), reaffirmed its commitment to inclusive growth in Kenya through programmes such as SUED, which help counties attract responsible private investment.
“Coastal farmers are at the heart of this initiative, enabling them to sell more produce for more money,” said Diana Dalton, Deputy High Commissioner and Development Director at the British High Commission. “It also helps to position Lamu as a competitive player in global supply chains and reduce reliance on imports.”
For Kentaste, one of East Africa’s leading coconut processors, the plant is a long-term commitment to the county. “By investing in local processing, we are strengthening the coconut value chain, creating jobs, and ensuring farmers have a reliable market for their produce,” said Kyle Denning, Director at Kentaste Products Limited.
FSD Kenya, the Managing Agent of SUED, has worked alongside Lamu County to structure the investment so that it is commercially viable, environmentally responsible and aligned with the county’s development plans.
“This investment demonstrates what is possible when long-term planning, local leadership, and private capital come together around a clear economic opportunity,” said Rashmi Pillai, FSD Kenya’s Chief Executive Officer. “The Kentaste coconut processing plant is not just an industrial asset; it is a platform for inclusive growth, resilience, and sustained livelihoods in Lamu.”
SUED, funded by the UK Government and implemented by FSD Kenya, supports selected counties to unlock sustainable, inclusive economic growth by strengthening urban economic planning and crowding in private sector investment. The programme works with county governments to identify priority sectors, develop bankable investment opportunities and attract private capital that creates jobs and delivers long-term economic benefits for local communities.
