Agriculture Cabinet Secretary Mutahi Kagwe has issued a firm warning to local macadamia processors, stating that the government could consider lifting the ban on raw macadamia exports if they fail to absorb all produce from local farmers. The CS said the ban was imposed to ensure Kenya benefits more from its macadamia crop by promoting local value addition and maximising returns for growers.
However, Kagwe made it clear that the government will have no choice but to rescind the ban if processors under the Macadamia Nut Association fail to purchase all available stocks from farmers at the agreed minimum price.
“What we are saying to the processors is that they need to organise themselves to take up all the macadamia that is there in the country and at the price that we had agreed on, a minimum of Sh100 per kilogram,” Kagwe said while speaking in Tetu, Nyeri County.
He added that if processors lack the capacity to handle the macadamia grown across the country, he will consult with industry players and systematically allow for raw macadamia exports in an organised manner.
Ban aimed at protecting farmers
Last year, the Agriculture and Food Authority banned the export of raw macadamia nuts in shell and unprocessed nuts, whether wet or dry. The directive also prohibited the export or transit of raw macadamia nuts through Kenya, regardless of their origin. Exporters from other countries were advised to seek alternative ports.
According to AFA Director General Dr Bruno Linyiru, the move was designed to safeguard the local nut processing industry and promote value addition within the country.
“This measure aims to support local farmers and processors by promoting domestic value addition through local processing and industrial development,” Dr Linyiru emphasised in a statement.
During the first National Macadamia Conference 2025 in Embu, Deputy President Prof Kithure Kindiki said the government would not back down on the ban and urged AFA to ensure its full enforcement. He said the government will not watch as farmers are exploited through the export of nuts at throwaway prices.
Production and prices on the rise
The leading macadamia-producing counties include Embu, Meru, Kiambu, Tharaka Nithi, Murang’a, Kirinyaga and Nyeri. Other counties with promising potential are Uasin Gishu, Trans Nzoia, and Machakos.
Data from AFA shows Kenya’s macadamia production in 2024 stood at 49,183 metric tonnes, a 4,819 tonne increase from the 44,364 metric tonnes produced in 2023. Prices saw a significant improvement during the year, rising by 68.9 per cent from Sh58 per kilogram to Sh98 per kilogram. As a result, the total value of nuts in shell at the farm gate rose from Sh2.66 billion in 2023 to Sh4.95 billion in 2024.
CS blames brokers for market distortions
Kagwe blamed brokers and middlemen in the sector for creating a perception that there is an oversupply of macadamia in the market. He accused middlemen of exploiting farmers by distorting market prices, buying nuts at low farm-gate prices and reselling them at higher rates.
“It is not that we have more macadamia, it is only that the market is disguised by the broker activities that are going on in the country. These individuals are buying from vulnerable farmers at very low prices of Sh30, aggregating them and selling it at Sh100,” the CS noted.
Farmers urged to form cooperatives
To counter exploitation, Kagwe asked macadamia farmers to organise themselves into cooperative societies, which he said will strengthen their bargaining power. Through such societies, farmers can secure stable prices for their produce and improve their returns.
“I have proposed that the macadamia farmers get together to form cooperative societies and cooperatives that can be able to sell together. You form a cartel the way that oil producers and coffee producers have cartels of their own. That is the way to go if you want to increase the prices even beyond what you have set,” he said.
For now, the ball is in the processors’ court. If they fail to buy all available macadamia from farmers at the agreed minimum price, the government appears ready to reopen raw nut exports, a move that would fundamentally change the dynamics of Kenya’s rapidly growing macadamia sector.
