Ban on raw macadamia exports to continue, says Kagwe
Business
By
Killiad Sinide
| Mar 12, 2025
Agriculture Cabinet Secretary Mutahi Kagwe has defended the government's decision to ban the export of raw macadamia.
Kagwe said the move aims to boost Kenya's manufacturing sector and create jobs for young people.
Speaking Wednesday during a Senate plenary session, where Senators questioned him about his docket, Kagwe said lifting the ban would contradict the government's policy of promoting processing and value addition in agriculture.
He argued that local processing of macadamia nuts generates employment, noting that the industry has created about 200,000 jobs across the value chain.
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"Continued exports of in-shell macadamia benefits only foreign buyers who use it as a raw material in their manufacturing which eventually competes with Kenya particular for the US, resulting in loss of jobs in Kenya's manufacturing sector and reduces export earnings since in-shell macadamia nuts fetch much lower prices compared to the kernel." said Kagwe.
According to the CS, Kenya earned Sh8.7 billion from exporting 10,670 tonnes of macadamia kernels between July 2023 and February 2025, compared to Sh2.3 billion from exporting 14,384 tonnes of unprocessed macadamia.
This, he said, underscores the higher value of processed exports.
"The processing of macadamia nuts locally creates jobs in the manufacturing sector and boosts the economy through enhanced foreign exchange earnings, "he said.
Furthermore, Kagwe highlighted strategies to ensure farmers get competitive prices for macadamia. They include the formation of cooperatives in counties through which farmers can negotiate with local processors and exporters. This move, the CS said, will eliminate middle men who exploit farmers who cannot reach processors. Furthermore, processors and exporters will enter into contractual agreements with farmers directly, with county governments and the national government being witnesses.
The CS has also requested farmers to register in the Kenya Integrated Agricultural Management System (KIAMIS) to enable them benefit from government subsidies. Additionally, the Ministry has proposed the formation of a multi-stakeholder Macadamia Nuts Standing Committee that will deliberate on farm gate prices to ensure farmers are not exploited.
Finally, Kagwe said the government is working with processors to implement a guarantedd minimum price of Sh100/kg of macadamia nuts.
Last month, the Ministry extended the raw in-shell macadamia export ban. Harvesting began on March 1.
Kenya is the third largest nut-in-shell and kernel macadamia exporter, after South Africa and Australia.