Sh100m fish processing plant a big catch for Coast economy

A Sh100 million fishing processing factory has been opened at the Coast, the biggest investment yet by a private investor towards exploiting fisheries resources.

Diamond Sea Food, based in Mtwapa, is owned jointly by Khizer Ayuba, a local investor, and the Danish government.

Mr Ndeketha said Kenya’s exclusive economic zone is unexploited as the exported fisheries products come from small-scale fishermen.

He said small-scale fishermen land about 8,000 metric tonnes annually most of which ends up in the domestic market.

The Danish Minister for Development Cooperation Soren Pind, who presided over the opening of the factory on Thursday, said his government owns part of Diamond Sea Food through Ekko Fisk.

He said the grant assistance through the Danida B2B (business to business) programme is important to establish processing and distribution of fresh and frozen fish for the domestic, regional and international markets.

“We anticipate that once the factory is fully operational in a month,” said Mr Pind, “it will employ about 50 people and the ability to process large quantities of fish will be instrumental in creating a more stable market for the fishing communities.”

Growing revenues from fish sales is baiting deep-pocketed investors angling for a piece of water economy.

With earnings from processed fish topping Sh8 billion annually, the Kenyan Coast has become a big attraction for seafood factories.

“Our statistics reveal that the fish and fisheries’ products that were exported mainly to the European Union were valued at more than $10 million (Sh8 billion),” Mr Ndeketha said.

During the same year exporters of live edible fish such as crabs, lobsters and ornamental fishery products mainly to the Far East, USA, South Africa and the EU earned over Sh60 million, government figures show.

Currently, most fish at the Coast is transported and stored without efficient cooling systems, which means low hygienic standards and possibly unhealthy food products that have trouble accessing the outside market.

Mr Pind said fishing communities will be helped to upgrade their production skills and equipment.

“The benefits that accrue once a financially healthy fish processing company with strong international ties has been created will depend on how the government of Kenya supports the development of the private sector to address poverty and unemployment,” he added.

The company is providing a logistic system, with 200 insulated ice boxes/coolers at strategic points.

Mr Ayub said the plant, which will fillet and freeze whole fish, has a capacity to process about 500 metric tonnes.

“Our interest at the moment is the local market especially hotels that have been buying fish directly from fishermen. But we will be the link between the local fishermen and the market because fish coming through our factory will fetch more money for the fishermen than when they deal directly with the buyers.

About 100 local fishermen have already been contracted. Mr Ayub said the factory meets European Union standards.

Mr Ndeketha said even with the limited capacity, fish processors exported 5,000 metric tonnes last year.