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Central08 June 2026 - 05:20

Relief for macadamia farmers as ministry signals policy review

Farmers and traders said the move could revive the sector that has been struggling

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by ALICE WAITHERA
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Nut Traders Association of Kenya (NUTAK) chairperson Johnson Kihara during a meeting with macadamia farmers at Sagana, Kirinyaga county, on June 6, 2026/ ALICE WAITHERA

Macadamia farmers and traders from the Mt Kenya region have welcomed indications by the Ministry of Agriculture it may allow the export of unprocessed nuts.

The farmers and traders, who met in Sagana, Kirinyaga county, on Saturday said the move could revive a sector that has been struggling with falling prices and limited market access.

They said a possible review of restrictions imposed under Section 43 of the Agriculture and Food Authority (AFA) Act, 2013, that imposes a ban on exportation of raw nuts would provide relief to thousands of growers whose produce remains unsold in stores and farms across the region.

Their optimism follows engagements with Agriculture CS Mutahi Kagwe, who they said had been presented with evidence showing huge stocks of macadamia nuts lacking buyers despite repeated assurances from processors that markets would recover.

"We are waiting for the CS next week to either remove Section 43 or give us six months so that farmers can sell their produce and stop the losses they are currently facing," Nut Traders Association of Kenya (NUTAK) chairperson Johnson Kihara said.

He said after presenting photographs and reports from farms and warehouses to Kagwe, a ministry team was dispatched to assess the situation on the ground.

The team, Kihara said, established that more than 18,000 tonnes of macadamia had no market, findings that were subsequently submitted to the ministry.

"My own research showed there are about 25,000 tonnes of macadamia. At the price being proposed, that stock is worth more than Sh5 billion," he said.

In April, the CS indicated that the ban could be lifted if the association of nut processors, Macnut, failed to absorb local produce. He made the remarks while meeting coffee farmers in Nyeri, many of whom also grow macadamia and raised concerns over the crisis.

The traders' leader also raised concerns over unpaid debts owed to farmers by some processors, saying some of the outstanding payments date back to 2023.

Macadamia nuts being dried by a trader in Meru before being transported to processors/ ALICE WAITHERA

Kihara said stakeholders had agreed to collect and submit relevant documents to AFA to establish the extent of the debts and ensure affected farmers receive their dues.

He said apart from China, countries such as Russia also import in-shell nuts that are baked, presenting opportunities for Kenya to expand its market for the produce.

"We want clear rules and regulations agreed upon with all stakeholders so that farmers know the prices they will receive and investors know the conditions under which they can operate," he said.

Farmers argued that restrictions on the export of raw macadamia have reduced competition in the market, locking out international buyers and leaving growers at the mercy of a few local processors.

They claimed that while neighbouring countries continue attracting investors willing to pay higher prices for macadamia, Kenyan farmers have seen returns decline sharply over the past few years.

Speaking during the meeting, Embu-based farmer and trader Stephen Juma accused the government of introducing policies that discourage investors from entering the Kenyan market.

"Create policies that allow farmers to earn at least two dollars per kilogramme like farmers in Tanzania and Uganda instead of telling us to sell at Sh100," he said.

Juma further criticised elected leaders from the Mt Kenya region for failing to oppose the legislation that he believes has hurt farmers, arguing that many growers feel abandoned despite the sector's contribution to household incomes.

The concerns were echoed by farmer Patrick Nyaga who said prices had dropped dramatically, making macadamia farming increasingly unprofitable.

Nyaga said some farmers who sold macadamia at about Sh150 per kilo when the law was suspended in 2023 are now receiving as little as Sh40, forcing many to question whether the crop remains viable.

The farmers also questioned renewed efforts to encourage cooperative marketing structures, arguing that similar arrangements in the past collapsed and left many growers counting losses.

"Instead of helping farmers access markets, the focus is now on convincing them to return to cooperative societies, yet farmers want solutions that will increase their earnings," he said.

At the same time, traders said investors from various countries had expressed interest in purchasing Kenyan macadamia if restrictions are eased, adding that China is not the only available market for the crop.

The country entered into a free trade agreement with China that took effect on May 1 this year and which is expected to significantly boost exports of local agricultural produce.

Under the agreement, tea, coffee, fresh and frozen avocados, macadamia nuts, flowers, fresh horticultural produce, vegetables, herbs and other farm commodities were listed among the key beneficiaries.

However, macadamia traders said they have been locked out of the opportunity because of the continued ban on the export of raw nuts, with farmers forced to hawk their produce in markets due to lack of market.

INSTANT ANALYSIS

Their optimism follows engagements with Agriculture Cabinet Secretary Mutahi Kagwe, who they said had been presented with evidence showing huge stocks of macadamia nuts lacking buyers despite repeated assurances from processors that markets would recover. A possible review of restrictions imposed under Section 43 of the AFA Act, 2013, that imposes a ban on exportation of raw nuts would provide relief to thousands of growers whose produce remains unsold in stores and farms across the region.

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