UK, private sector invest US$1.78M in climate-smart chilli processing in Kenya
A joint investment is helping boost chilli production, reduce losses, and increase incomes for thousands of farmers.
KENYA – A combined investment of KES 230 million (US$1.78 million) from the UK Government and Equator Kenya Limited (EKL) is breathing new life into chilli farming in Kilifi County, with a focus on solar energy and climate-smart technologies.
The British High Commissioner to Kenya, Neil Wigan, officially opened the new chilli processing plant in Malindi, highlighting how the UK’s Sustainable Urban Economic Development Programme (SUED) is working hand in hand with the private sector to create jobs, cut carbon emissions, and grow rural incomes.
“This plant demonstrates how targeted support can drive both economic growth and climate action,” said Mr. Wigan. “It reflects our continued commitment to working with counties and the private sector to deliver long-term development results.”
Turning investment into impact
Equator Kenya Limited invested over 170 million shillings into upgrading its facility, while the UK Government provided 43 million shillings in seed funding.
The funds are helping double chilli production from 70 to 150 metric tonnes, while cutting energy costs by shifting 90% of the plant’s power supply to solar.
The project also supports farmers through tools that improve soil health and send real-time farming advice. These changes have already led to reduced post-harvest losses, better crop management, and expanded processing into value-added products like chilli flakes.
“Thanks to these changes, our farmers are now in a better place to face climate risks while earning more from their produce,” said an EKL manager during the launch.
Local farmers, local growth
EKL’s work now reaches over 8,500 farmers, helping them apply better farming methods that increase yields and income. Kilifi County has supported the project by providing farmers with extension services and access to improved crop varieties.
Kenya’s chilli industry is steadily growing. In 2024, the country produced 11,730 metric tonnes of green chillies valued at US$6.75 million.
With a 12% growth in the chilli and pepper market last year alone, local and international demand is rising.
Even so, chilli farmers still lose up to 30% of their harvest after picking, mostly due to poor storage and weak supply chains. By raising processing capacity, EKL is helping reduce these losses while opening up more export and local market opportunities.
“There’s a lot more we can do,” said a company representative. “This facility is just the beginning of what chilli farming in Kenya can become with the right support.”
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