Kenya Ethanol market size is projected to grow at a CAGR of 15% during 2022-2028

Molasses, by Source Type acquired the largest market revenue share in the Kenya Ethanol market – 6Wresearch.

Ethanol production in Kenya is exclusively from Molasses, which is a byproduct of sugar production, which was around 690,000 Metric Tons (MT) in 2021-2022, therefore, local production is exclusively from molasses in the country through local sugar production and the remaining demand is fulfilled via molasses imports from the countries like Uganda and Tanzania. Furthermore, as the country has gained competence in sugar production, there is more efficiency and productivity in molasses production in the country. Hence, molasses segment is expected to grow in-line with the Kenya ethanol market.

According to 6Wresearch, Kenya Ethanol market size is projected to grow at a CAGR of 15% during 2022-28. The market would rapidly in coming years on account of economic diversification towards pharmaceuticals, personal care, and cosmetics industry, which is expected to push ethanol consumption in the country and would open new growth horizons for the ethanol producers. Also, the fuel and fuel additives segment would register high growth due to the rising urbanization and growing urban population in the country, which would spur growth commutation and transportation rates in the urban cities. Hence, it would increase ethanol production in the country.

According to Parth Taneja, Research Associate, 6Wresearch,Nakuru is the best destination to setup ethanol production plant and distribution of undenatured ethanol owing to the close spatial proximity to both Kisumu and Nairobi, thus, it serves as a best destination for cost optimization, enhancing market reach and maximizing profits. Furthermore, Kisumu consists of the sugar factories cluster and Nairobi is the biggest market due to its urban population and beverage industry. therefore, Nakuru which ranks best destination for ease of doing business for SMEs is the most advisable county for production and distribution of ethanol in Kenya.”

According to Shivali Sharma, Senior Research Analyst, 6Wresearch, “The growing requirements of the power and fuel to support the emerging economy would further strengthen ethanol position in the fuels and fuel additive segments, as Kenya has planned to substitute primary fuels such as wood, coal, LPG, and Kerosene with ethanol fuel would increase the revenues in the fuels and fuel additives application of ethanol in the country. Hence, the Kenya Ethanol Cooking fuel masterplan, 2020 for the establishment of the ECF industry in Kenya would serve as a catalyst for the overall revenue generation potential in the country.”

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“Kenya Ethanol market (2022-28)” report provides an in-depth analysis with 17 figures and 3 tables, covered in 62 pages. The report comprehensively covers the market by types, applications, and regions. Kenya Ethanol market report provides an unbiased and detailed analysis of the on-going trends, opportunities/high growth areas, market drivers which would help the stakeholders to devise and align their market strategies according to the current and future market dynamics.

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