At an age when most children would run away from insects, Olivia Naliaka did the opposite. Whenever the rains fell, neighbours in her village would collect termites, a seasonal delicacy in many Western Kenya communities.
Curious but frightened, the young girl accepted a handful from her father. The taste was unforgettable.
‘My parents tell me that after tasting them, I spent the rest of the evening running around trying to catch my own termites,’ says the 30-year-old entrepreneur.
What seemed like an innocent childhood adventure has grown into a multimillion-shilling agribusiness.
Today, Naliaka is the founder and CEO of Protein Hive, a Kiambu-based company producing edible insects for human consumption and animal feed while working with more than 200 contract farmers across Kenya.
Startup capital and growth
From a business that started with Sh300,000 borrowed from family, friends and personal savings, the enterprise has attracted about Sh15 million in investments over the years through reinvested earnings, training income and sales.
Protein Hive is now targeting production of two tonnes of insects every week to satisfy growing demand from local and export markets.
The company began inside a 10-metre by 8-metre structure that served as a pilot production unit. A greenhouse followed in 2022 before the business established climate-controlled container facilities in 2023 through collaboration with development partners, entrepreneurs and researchers.
Without ready investors, Naliaka built Protein Hive by bootstrapping.
‘We didn’t have access to funding opportunities, so we kept reinvesting everything we earned from training, consultancy and sales.’
Today, the company specialises in five insect species: crickets, termites, grasshoppers, mealworms and Black Soldier Fly (BSF) larvae.
The insects serve different markets, Naliaka says. BSF larvae are processed into protein ingredients for fish feed and other livestock feeds, while crickets, termites, mealworms and grasshoppers are transformed into foods for human consumption.
Value addition
Instead of selling insects in their whole form, Protein Hive focuses on value addition. Its products include protein-enriched granola, cookies, biscuits, spices, chapatis, bread, porridge flour and pancake mixes.
‘Most families already consume these foods. Instead of asking consumers to completely change their diets, we enrich the foods with insect protein,” Naliaka says.
The approach also addresses childhood protein deficiency by fortifying staples such as porridge flour with affordable protein.
Prices vary depending on protein concentration. Products containing 15 percent insect protein retail at Sh350 per 100 grammes, while those containing 20 percent, 25 percent and 30 percent protein sell at Sh400, Sh450 and Sh500 respectively.
‘Production has expanded considerably since the early days when the business produced just 10 kilogrammes of crickets every week for research.
‘Today, Protein Hive processes up to 500 kilos per insect species weekly and plans are underway to quadruple that volume to two tonnes,’ Naliaka tells the BDLife during the interview in one of her facilities at Kikuyu, Kiambu County.
About 80 to 90 percent of the current production consists of Black Soldier Fly larvae destined for the animal feed industry, while the rest comprises crickets, termites, mealworms and grasshoppers.
The business model
To support production, the company has built an outgrower model involving more than 200 farmers in Kiambu, Nairobi, Bungoma, Turkana and Samburu counties. Protein Hive trains farmers on insect production before buying back their harvests for processing and marketing.
According to Adrian Odira, the company’s chief technical officer, technology has become central to coordinating the growing network.
‘We have digital platforms where farmers update us on their production stages, expected harvests and available quantities. That helps us forecast supply and plan value addition,’ he says.
The company also employs Internet of Things sensors to monitor temperature, humidity and ammonia levels inside insect production facilities. Artificial intelligence, according to Mr Odira helps predict changes in production conditions, enabling early intervention before losses occur.
Apart from producing protein, the insects generate another valuable commodity. Their waste, known as ‘frass’, is processed into organic fertiliser, creating a circular production system where crops fertilised using frass later become feed for the insects.
‘We don’t use pesticides because they would kill our insects. The result is a completely organic production system,’ says Ms Naliaka.
Market research
While edible insects remain unfamiliar to many consumers, attitudes are changing.
The entrepreneur says that the market research her company and development partners conducted between 2021 and 2023, found that 88 percent of local consumers were willing to try insect-based foods once they understood the nutritional benefits.
Another study found that 97 percent of respondents would be willing to give insect-based foods to their children. ‘We are therefore focusing first on urban consumers before expanding deeper into rural markets, especially food-insecure regions where affordable protein can make a significant nutritional difference,’ she says.
Struggling to meet demand
Although Kenya remains an important market, export demand currently outpaces local consumption. The company is working toward certification to export insect products to Brazil and parts of Europe, markets where buyers are already waiting.
‘We are actually struggling to meet demand,’ she says.
For Naliaka, however, success has not only been measured by profits. The company has grown from a one-woman operation into an employer of 10 staff while supporting hundreds of outgrowers across the country.
Biggest lessons
The biggest lesson has been learning to trust the process. ‘Funding was our biggest challenge. Instead of spending years convincing investors, we decided to build a working business first. Results speak louder than presentations.’
She also credits research as another lesson shaping every decision.
‘Research tells you what the market wants before you invest. It helps you understand your product, your customer, and your opportunities. For entrepreneurs entering niche sectors, continuous learning is not optional,’ she says.