Setting the Record Straight on Kenya’s Macadamia Industry
Kenya’s macadamia industry is at the center of heated debate, with claims circulating that government policies have caused a drop in farm gate prices—from KES 150 (US$1.16) to KES 90 (US$0.70) per kilogram. However, the Macadamia Nut Processors Association of Kenya (MACNUT) and local farmers strongly refute these claims, arguing that the price drop is not a result of policy but rather a market distortion created by brokers hoarding raw nuts meant for export.
Government Policies Are Protecting, Not Hurting, Farmers
Speaking on March 5 in Diani, Kwale, after a three-day workshop reviewing the directive by Agriculture Cabinet Secretary (CS) Mutahi Kagwe, MACNUT chairperson Jane Maigua clarified that the government’s intervention is actually designed to protect farmers and stabilize the sector.
“No farmer should receive less than KES 100 (US$0.77) per kilogram, as per government policy. The narrative that policy has caused a price drop is being pushed by brokers who are unhappy with the crackdown on raw macadamia exports,” Maigua explained.
At the heart of the issue is the ban on exporting unprocessed macadamia nuts, a move aimed at strengthening Kenya’s local processing capacity. The policy is designed to:
✅ Protect farmers from exploitation by middlemen
✅ Create more local jobs in the processing industry
✅ Increase value addition and earnings from Kenya’s macadamia sector
MACNUT urged farmers to remain cautious of unscrupulous traders attempting to manipulate the market by spreading misinformation.
Banning Raw Exports: A Long-Term Win for Farmers
The 2025 macadamia harvesting season officially kicked off on March 1, with the government firmly standing by its decision to prohibit the export of raw and in-shell macadamia nuts.
CS Mutahi Kagwe reaffirmed that the policy aligns with:
✔ The Agricultural Food Authority (AFA) Act
✔ The Oil Crops (Nuts and Crops) Regulations of 2020
✔ Kenya’s national and international trade commitments
“The strength of Kenya’s macadamia industry will not come from lobbying for raw nut exports but from collective efforts to boost local value addition,” Kagwe stated.
Boosting Local Processing: A Game-Changer for the Economy
Kenya’s macadamia processing capacity far exceeds current production levels, meaning the country can process all its nuts locally instead of exporting raw produce.
James Muturi, Chair of the Agriculture CECM Caucus representing all 47 counties, called for strict enforcement of the export ban, particularly to the Chinese market, where much of Kenya’s raw macadamia had previously been sent.
“By preventing unprocessed exports, we can maximize value addition, ensure greater returns for farmers, and solidify Kenya’s place as a leading global macadamia producer,” Muturi emphasized.
The numbers speak for themselves:
📉 Kernel exports in the first half of 2024 were valued at KES 3.3 billion (US$25.6 million), a sharp decline from previous years.
📉 The estimated total revenue loss from raw nut exports exceeded KES 6.5 billion (US$50 million).
Encouraging local processing means keeping more money within the Kenyan economy, rather than losing billions to overseas markets that buy raw nuts, process them, and sell them at much higher prices.
Farmers Must Avoid Selling Immature Macadamia
Another critical issue affecting prices and Kenya’s reputation internationally is the sale of immature macadamia nuts.
MACNUT urged farmers to be patient and avoid harvesting prematurely, warning that such practices could compromise the quality of Kenyan macadamia in global markets—especially in the European Union, a key buyer.
“Selling immature nuts hurts everyone—farmers, processors, and the country’s reputation. It could even lead to bans on Kenyan macadamia in international markets,” Maigua cautioned.
AFA, County Governments to Support Farmers
To ensure that farmers fully benefit from the government’s policies, the Agricultural Food Authority (AFA) is working with county governments to:
🔹 Facilitate the formation of farmer groups
🔹 Offer e-Extension services
🔹 Provide subsidized fertilizers
🔹 Deliver real-time market information
Additionally, all macadamia farmers have been urged to register under the Kenya Integrated Agricultural Management System (KIAMIS). This will enable better coordination between the government, private sector, and development partners, ensuring that farmers receive the support they need.
The Future of Kenya’s Macadamia Industry Is Bright
Kenya’s macadamia industry is at a turning point. The government’s ban on raw exports is not a setback—it’s a step toward long-term prosperity. By strengthening local processing, eliminating middlemen exploitation, and ensuring quality standards, the industry is positioning itself for sustainable growth and better farmer earnings.
The message is clear: Kenya’s macadamia industry must focus on value addition, not short-term gains from raw exports.
As the 2025 season unfolds, farmers, processors, and policymakers must work together to protect the integrity of the sector and ensure that Kenya reaps the full benefits of its world-class macadamia production.
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