Kenya's Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe has increased intervention in agricultural value chains, linking market discipline, cooperative governance, and research investment to farmer income stability and productivity.
Speaking in Nyeri, Kagwe directed macadamia processors to purchase all locally produced nuts at the minimum price of Sh100 per kilogram (US$0.75/kg), warning that failure to comply could lead to a reversal of restrictions on raw in-shell exports.
He said the macadamia market had been affected by intermediaries, with some farmers receiving as little as Sh30 per kilogram (US$0.23/kg).
"The intention is not to punish processors, but to ensure the farmer is not the weakest link in the chain. If processors cannot take what is produced locally, then we will have to reconsider export restrictions," said Kagwe.
He added that strengthening cooperatives is central to improving bargaining power and reducing broker influence.
Kagwe also raised concerns over theft of high-value crops, including avocado and macadamia.
"Avocado and macadamia theft must stop by all means. Any activity that undermines agriculture is economic sabotage," he said.
He noted that protecting production is linked to maintaining confidence in rural systems and export performance.
Kagwe also addressed financial management in cooperatives, warning that repeated bailouts are not sustainable without accountability.
He cited cases where some factories had accumulated heavy debts without clear audit trails on how borrowed funds were used.
"Government cannot continuously write off debts when there is no clarity on how those funds were used. That cycle is not sustainable," he said.
New regulations now require cooperatives seeking credit to present structured business plans before accessing loans.
He urged cooperative members to improve governance and oversight.
"Members must raise the quality of leadership in their organisations. Weak governance is one of the main reasons some factories are struggling," he said.
Source: Uzalendo News
