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NEWS & CURRENT AFFAIRS

The Nairobian

Macadamia could fetch Kenya Sh10b if value-added, says lobby

Business

By Esther Dianah | Feb 25, 2025

L-R: Joel Kobia vice chair Mcnut,Jane Maigwa chair Macnut,Bernard Sitati Treasurer speaking during a press briefing,The MACNUT Association, representing local Macadamia nut processors, is calling on the Government of Kenya through the Ministry of Agriculture to address the critical challenges facing the macadamia nut processing industry. [Wilberforce Okwiri,Standard]

Kenya could potentially earn over Sh10.4 billion from processing and export of value-added macadamia nuts if the ban is upheld, a farmers’ lobby has said.

On top of boosting the Kenyan economy, the Macadamia Farmers Association (Macnut Association) said the sector can create 30,000 jobs for young men and women and sustain over 200,000 households.

This is as rivalry between traders of processed macadamia nuts and those dealing in in-shell nuts takes a new twist, with the latter accusing the agricultural industry regulator of favouring the former.

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The Nut Traders Association of Kenya (Nutack) claims that the Agriculture and Food Authority (AFA) favours macadamia nut dealers aligned with the Macnut Association of Kenya.

In the ongoing dispute, Macnut Vice-Chairman Joel Mwiti has written to AFA, calling for stricter penalties for raw nut or in-shell traders, alleging that they are involved in malpractice that could damage the integrity of the industry.

While lauding the ban and calling out brokers, the Macnut Association said there is a risk of adulterating macadamia raw materials when the buying season begins on March 1.

This, they pegged on the growing concern on illegal trading of unprocessed macadamia nuts. “Reports indicate that smugglers are operating without licences, rejecting thousands of tonnes of the crop while preparing to inject these nuts back into the supply chain,” Macbut Association chairperson Jane Maigua said.

In November last year, the government reinstated the ban on the export of unprocessed nuts, because value-added and processed nuts provide more benefits to the Kenyan economy.

The ban dealt a blow to farmers who were then stuck with the product with nowhere to sell. It came with only a 30-day window for export, contrary to the initial six-month extension.

According to Maigua, the export of nut-in-shell is filled with malpractices that undermine the integrity of the macadamia industry.

“There are reports of traders colluding with unscrupulous farmers to bypass regulations, resulting in the sale of substandard or unripe nuts that do not meet international quality standards,” Maigua said.

“This not only jeopardises Kenya’s reputation in the global market but also diminishes the potential earnings for farmers who invest in quality production.” Kenya has established itself as the fourth-largest producer of macadamia nuts globally, with a 13 per cent market share, translating to 7,750 tonnes on a processed kernel basis.

About 200,000 smallholder farmers are involved in this sector, which has seen production increase from 11,000 tonnes of nut-in-shell (NIS) in 2009 to 45,000 tonnes in 2023. The Agriculture and Food Authority’s estimates that production could reach 63,000 tonnes NIS by 2027, representing a 40 per cent increase from 2023 levels.

According to recent data from the Kenya National Bureau of Statistics (KNBS), Kenya earned Sh5.8 billion from exporting shelled macadamia nuts in 2023, with a total kernel export of 7,816 tonnes.

Murang’a, Meru and Embu are Kenya’s macadamia top-producing counties.