Macadamia farmers and traders in Kenya have called on Agriculture CS Mutahi Kagwe to consider suspending the law prohibiting the export of raw nuts, citing concerns over limited market access and reduced demand. The current regulation allows only processors to export, mainly to Western markets, while excluding Asian markets that prefer raw nuts.
Nut Traders Association of Kenya chairperson Johnson Kihara said the policy, aimed at promoting value addition, has constrained market access. Stakeholders previously engaged with the CS in February last year to address sector challenges, but traders say the outcomes have not provided relief.
"The CS later said he had found a market in the U.S. He went on a trip to the country accompanied by the chairlady of the Macadamia Association of Kenya (Macnut)," Kihara said. Macnut represents processors exporting value-added products.
Kihara said liberalising the market would allow processors to continue exporting processed nuts while enabling traders to export a portion of raw nuts, improving returns for farmers. However, Section 43 of the Crops Act 2013, which bans raw nut exports, has limited market options and affected the sector.
Processors are unable to absorb total production due to slower uptake in export markets. "I would like to tell the CS that the market they said they secured in the U.S. has not reached the farmer. About eight nut trading companies have now shut down. Farmers have macadamia nuts piled up at home," he said.
Aggregators are holding unsold stock, and prices may come under further pressure in the coming weeks. Kihara said revising the regulation would allow surplus volumes to access alternative markets while maintaining processed exports.
"If the market is low in the West, there is still a market in China. Doing away with the law will make it possible for farmers to sell their macadamia directly from the farm," he said.
A trade agreement between Kenya and China is expected to allow duty-free exports of agricultural products from May 1, 2026. The announcement was made during a meeting between CS Kagwe, Chinese Ambassador Guo Haiyan, and business representatives. Previously, tea and coffee faced tariffs of 6 to 15 per cent, while macadamia nuts were subject to tariffs of around 10 to 15 per cent.
In 2025, exports of fresh and frozen avocados and macadamia nuts to China reached US$19.9 million. Kenya is the third-largest macadamia producer globally, accounting for about 20 per cent of supply. The sector supports between 200,000 and 500,000 smallholder farmers, mainly in the Mt Kenya, Eastern, and Rift Valley regions.
In 2024, production reached 51,200 tons, valued at approximately US$38.2 million, with around 4,488 hectares under cultivation. Prices reached Sh180 per kilo in 2023 when the export ban was temporarily lifted, while current farm-gate prices range between Sh50 and Sh80 per kilo.
Source: The Star
