Value Chain Analysis of the Coconut Sub-sector in Kenya

Abstract

The coconut plant also known as coccus nucifera in botanical terms is predominantly grown in coastal belt areas of Kenya especially in Kilifi,Kwale, Mombasa, Lamu, Tana river and Taita Taveta County. The plant is also grown in other areas such as Nyanza, Western Kenya, Eastern and Rift Valley region but the coastal region accounts for 99% of the entire coconut population. The plant has huge economic potential which if properly utilized can enhance economic growth and catapult our nation towards poverty and hunger reduction while propelling the nation towards achievement of sustainable development goal as encapsulated through Vision 2030 (GoK, 2008). According to Kenya Agricultural &Livestock Research Organization (2016),the current monetary value of coconut and coconut products is KES 3.2 billion which is only 25% of the estimated potential of KES 13 billion. This study was aimed at assessing the value chain analysis of the coconut subsector in Kenya focusing more on the components of coconut value chain as well as the determinants of coconut value chain. The study used descriptive crosssectional survey design and its population was comprised of forty two (42) SMEs engaged in coconut value addition. However response was obtained from twenty six (26) respondents who represented 62% of the entire population. Data analysis was done with the help of Microsoft Excel version 2010 and mean, percentage and standard deviation was used as a tool for data analysis. The findings of the study revealed that value addition in the coconut subsector is very important in Kenya and that various institutions play critical role in the value chain process. Such institutions includes Nuts and Oil Crops Directorate (NOCD),County Ministry of Agriculture (MOA) , KARI, KEFRI, KALRO, growers, seedling distributors ,processors amongst various SMEs engaged in coconut value addition.