Kenyan macadamia farmers and exporters are facing a crisis as the Agriculture and Food Authority (AFA) continues to withhold mandatory export certifications, despite a court order mandating the facilitation of in-shell macadamia nut exports. This regulatory impasse is causing significant financial losses and threatens the stability of the macadamia sector, a critical contributor to Kenya’s agricultural exports.
The Current Impasse
Court Order and Regulatory Defiance
On February 18, 2025, High Court Judge Lawrence Mugambi extended an order allowing the export of in-shell macadamia nuts. This followed a petition by Eric Mbaabu Mwirigi and Edenswin Traders Limited challenging the Ministry of Agriculture’s ban on harvesting macadamia nuts from November 2, 2024, to March 1, 2025. The ban was initially imposed to prevent the export of immature nuts and stabilize the market but was later suspended.
Despite the court’s clear directive, AFA has not issued the necessary export certifications. This defiance has resulted in containers of macadamia nuts being stranded in warehouses, unable to reach international markets.
Economic Impact on Farmers and Traders
The Nut Traders Association of Kenya, led by Johnson Kihara, has expressed deep concern over the ongoing situation. Kihara warns that the stalemate could drive down farm gate prices and lead to substantial losses for farmers and traders. The prolonged delay is exacerbating the economic strain on stakeholders who depend on the timely export of their produce.
The Stakes for Kenya’s Macadamia Sector
Declining Exports
Kenya’s macadamia export sector has already seen a downturn, with kernel exports in the first half of 2024 valued at KES 3.3 billion (US$25.6 million), a sharp decline from previous years. The total revenue loss from raw nut exports is estimated at over KES 6.5 billion (US$50 million), highlighting the severe economic implications of the current export certification bottleneck.
Industry Voices and Legal Actions
Eric Mbaabu Mwirigi, one of the petitioners, has pledged to return to court to seek the possible imprisonment of the Agriculture CS and AFA Director-General for contempt of court. Mwirigi underscores the urgency of the situation, noting that continued non-compliance with the court order will further harm the macadamia industry.
Stakeholders, including farmers, traders, and exporters, are urging the Ministry of Agriculture and AFA to comply with the court’s ruling and facilitate the export of macadamia nuts to avert further economic losses.
A Call for Resolution
The macadamia industry is a vital part of Kenya’s agricultural export portfolio. Immediate action is needed to resolve the current impasse and ensure the free flow of macadamia exports. Stakeholders are calling for adherence to the court’s directive and effective regulatory compliance to stabilize the sector and prevent further financial damage.
Conclusion
The withholding of export certifications by AFA is causing widespread disruption in Kenya’s macadamia industry. With millions of dollars at stake, it is imperative that the relevant authorities act swiftly to comply with court orders and restore confidence in the sector. The upcoming court mention on February 18, 2025, will be a crucial moment for the future of Kenya’s macadamia exports, and all eyes will be on the judiciary and regulatory bodies to bring a swift resolution to this ongoing crisis.
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