How a sachet of virgin coconut oil brought economic security to farmers in Kenya
A new coconut oil product sold in Kenya’s local market enabled smallholder farmers to sell their coconuts at better prices and gave them more work opportunities.
SSNUP supported Alterfin in conducting the pilot and marketing phases of the new virgin coconut oil sachets with Kentaste, Kenya’s leading manufacturer of coconut-based products. The goal was to stimulate demand for coconuts and strengthen the value chain.
Kentaste decided to launch a new strategy and invest in Kenya’s largest market segment with individuals earning no more than 5 euros per day. The main challenge was that this share of the market could not afford virgin coconut oil, due to its high cost and large packaging. To overcome the obstacle, instead of going big, Kentaste went for small: small and affordable pouches.
As a result of the technical assistance project supported by SSNUP, Kentaste increased its supply base by 2,508 smallholder farmers, representing a 70% increase in just two years. Those farmers gained access to a new market where they could sell their coconuts at competitive prices, boosting their income and creating additional work opportunities.