Mutahi Kagwe Defends Macadamia Export Ban, Highlights Progress In Tea Sector Reforms
CS Mutahi Kagwe at Senate chambers yesterday
By MKT Correspondents
Cabinet Secretary for Agriculture and Livestock Development Mutahi Kagwe has reaffirmed the government’s commitment to protecting Kenya’s macadamia and tea sectors.
He made the disclosure yesterday while appearing before the Senate Plenary where he addressed concerns raised by Kirinyaga County Senator Kamau Murango.
On revitalizing the nuts and oil value chain, the CS noted that the ban on raw macadamia (in-shell) exports will remain in place to safeguard over 200,000 jobs and boost local processing.
He emphasized that lifting the ban would hurt the macadamia value chain, contradicting the government’s push for value addition and local industrial growth.
He revealed that between July 2023 and February this year, Kenya earned KSh8.7 billion from exporting 10,670 tons of processed macadamia, compared to KSh2.3 billion from 14,384.6 tons of raw macadamia.
Processed macadamia fetches KSh816/kg, far higher than KSh161/kg for in-shell nuts.
“We are focused on supporting farmers and processors rather than lifting the export ban. Farmers will be assisted in forming cooperatives to negotiate better prices and will be incorporated into KIAMIS for access to government subsidies,” he told the Senators, adding, “We are also implementing a minimum guarantee price of KSh100/kg. To further support the sector, the government will protect local processors from unfair competition, provide training on production techniques and quality enhancement, and facilitate international market access while establishing a regular production calendar for effective quality control.”
On ensuring transparency and maximizing earnings from the Tea sector, Kagwe dispelled claims of illegal tea blending before the auction, clarifying that blending occurs after the auction as per market requirements.
He emphasized that the Tea Board of Kenya (TBK) conducts compliance audits on warehouses and blending facilities and performs surveillance audits to ensure adherence to good agricultural and manufacturing practices.
The government has also introduced a traceability system to track tea from farm to auction, enhancing transparency and accountability.
Reviewing the progress of tea sector reforms, the CS highlighted that monthly farmer earnings have increased from KSh16 to KSh21/20 in the East and West of the Rift. Tea export earnings have grown from KSh136.5 billion in 2021 to KSh181.69 billion last year.
Value-added tea production has increased from 20.3 million kg in 2022 to 28.89 million kg last year, raising sales value from KSh3.5 billion to KSh12.08 billion. The sector has also expanded into speciality and orthodox teas, supported by government initiatives such as subsidized fertilizers and other farm input cost reductions.
Kagwe reaffirmed the government’s commitment to empowering farmers, strengthening value chains, and ensuring global competitiveness for Kenya’s agricultural exports.
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