The project enables value addition for oil seeds from locally available trees, expecting economic and environmental benefits for the local population in some of the poorer semi-arid agro-pastoral areas of northern Kenya. Seeds of indigenous trees, such as Croton (Croton megalocarpus), Yangu (Calodendendrum capense), Marula (Sclerocarya birrea) and Baobab (Adansonia digitata) will be collected by women and young people, offering them an alternative source of income.

Horizon Business Ventures LTD (HBV) operates in Kenya since 2008. Currently, about 60% of the croton oil produced by HBV is marketed for making soap and paint. Cape chestnut oil is produced for the cosmetic industry. Oils from Baobab and Marula are extracted at an experimental basis and the extraction process is being optimized. In Kenya, HBV is the only company so far producing Yangu oil. It is expected that at least 0.5 tonnes of essential oils per month from HBV will be marketed in premium markets in The Netherlands, Switzerland and Austria.

The project installs (i) a distiller and an additional processing unit for Marula oil, (ii) feedstock storage capacity, (iii) quality control facility, and (iv) seed grading system and packaging containers.

Socio-economic impact

-Additional income of USD 360/year for about 1,000 collectors of seeds, mainly women and youth.
-Creation of additional 55 permanent jobs along the value chain (transport, processing and marketing) and an additional 118 temporary jobs for grading, processing, testing, labelling and packaging.
– Increase of wages for permanent staff from an average 9 USD/day to 12 USD/day.

Environmental impact

-Expected reduction of illegal activities such as charcoal and logging.
-Increased interest in saving and planting trees, with an expected additional 500 ha planted with these trees.
-Use of by-products of essential oils (cake, shells) for animal feed and briquettes.
-Use of croton oil as biodiesel for own generators and selling croton oil also as biodiesel and environmental friendly alternative for fossil fuel.

PROJECT OVERVIEW
Organization: Horizon Business Ventures Ltd (HBV) Project: CFC/2016/09/0002FT
Country: Kenya Commodity: Oils
Total Cost: USD 238,000 CFC Financing: USD 118,000



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