Senators have received a major boost in their push to permanently lift the ban on exportation of macadamia, cashew nuts and bixa after speaker Amason Kingi cleared a Bill.
The speaker has given the nod for the publication and introduction in the House of the Agriculture and Food Authority (Amendment) Bill, 2023.imposed in 2015.
The Bill, sponsored by Kirinyaga senator James Murango, prohibits ban on exportation of the products in a bid to protect farmers from exploitation by cartels and brokers.
“The laws are discriminating against macadamia, cashew nuts and bixa farmers,” Murango, who chairs Senate’s Agriculture committee, said.
The move comes days after Trade CS Moses Kuria lifted the ban on exportation of raw macadamia nuts that had been c
The CS said the one-year temporary lifting of the ban is aimed at freeing the product to the foreign market.
“We are lifting the ban on exportation of raw macadamia to a year to bring into the country other buyers from all over the world. This will open market for competitiveness,” Kuria said.
Murango has been leading the push to lift the ban, arguing the blanket ban had open floodgates for brokers who exploited farmers.
In his Bill, the lawmaker has proposed amendments to section Section 43 of the Agriculture and Food Authority Act, 2013.
The Section restricts local farmers from exporting the nuts except with written authority of the cabinet secretary responsible for agriculture.
“Four years ago, the nuts used to go for Sh180 a kilo when the Chinese were buying the nuts but now the prices have been slashed,” Murango said in his justification for the Bill.
With the speaker’s clearance, the Bill is now set for publication and official introduction in the Senate for first reading.
“Today, 150g of macadamia costs Sh505 in the supermarket or about 3600 per kg. But the broker buys the same quantity at between Sh20 and Sh30 from the farmer. Isn’t that exploitation?’ he posed.
The importation of nuts and oil crop products is subject to the terms and conditions as specified in the such as adherence to the local and international standards.
The Crops (Nuts and Oil Crops) Regulations, 2020, importers and exporters must be a body corporate registered in Kenya with a valid tax compliance certificate.
Each consignment exported or imported is required to be accompanied by an import permit or certificate.
Kenya has around 200,000 macadamia small farms spread across Embu, Meru, Machakos, Kirinyaga, Kiambu, Taita Taveta, Tharaka Nithi, Baringo, Murang’a and Nyeri.
Uasin Gishu, Elgeyo Marakwet, Bungoma, Kakamega and Nandi counties have joined the troop with high global demand for the crop leading to a local mad rush to grow the crop.
The farms currently produce an estimated 41,000 tonnes in-shell nuts, constituting about 20 percent of global supply.
Processing companies have set up shop in Murang’a, Embu, Taita Taveta and are now expanding to Bungoma.
So far, the country has over 30 industries buying the nuts from farmers with most simply processing the produce for export.
On the other hand, Coastal Kenya has a higher concentration of cashew nut trees with almost 70,000 smallholder farmers along the coastline.
The nuts are in high demand in Germany and Nordic countries and in 2015, Kenya exported 600 metric tonnes of cashew kernels.
Narok Senator Ledama Olekina said legislation was made to kill the economy and promote cartels and brokers, saying the provision of the law has seen farmers terrorised by brokers.
He decried that despite about 90 percent of Macadamia produced in Kenya meant for export, farmers cannot sell directly to the export market.
The senator said that although global prices for raw macadamia range between Sh90 and Sh120 a kilo, local farmers are getting a paltry Sh20 a kilo.
Embu Senator Alexander Mundigi, in a request for statement, asked the committee to inquire whether there are plans to lift the ban and measures put by the government to avoid price fluctuations of raw macadamia nuts.
He also wanted to know the steps being taken to boost income from exports in a free market considering agricultural and food authority has lowered the per-kilogram price from Sh200 to Sh30.
“The committee should provide information whether local macadamia nut companies have the capacity to process and market the nuts for small scale farmers,” he said.
