By Cynthia Masibo
The MACNUT Association, representing Kenya’s local macadamia nut processors, has issued an urgent appeal to the government to address the dire challenges facing the industry.
The call comes in the wake of a government decision that has allowed the direct export of raw, unprocessed macadamia nuts, leading to significant financial losses for local processors and farmers, as well as widespread job layoffs.
In 2023, the Ministry of Agriculture approved the export of raw nuts to alleviate an unsold surplus. However, this move has inadvertently led to an influx of Chinese nut-in-shell (NIS) exporters who are selectively purchasing grafted nuts, leaving the majority of indigenous varieties unsold.
As a result, local processors have been deprived of the quality nuts necessary for value addition, severely impacting their operations and profitability.
“The Kenyan macadamia sector has flourished over the last 10-15 years, primarily through the export of processed kernels to the USA and Europe,” said Mrs. Jane Maigua, chairperson of the MACNUT Association. “However, the current directive has drastically reduced the availability of nuts for value addition by local processors, endangering our market position and the livelihoods of thousands of Kenyans.”
The consequences of this policy have been far-reaching. By July 2024, Kenya’s exports amounted to KSh 3.3 billion, a significant drop from the KSh6.9 billion generated before the restriction. The direct export of unprocessed nuts has not only diminished revenue but also led to the loss of over $50 million, including $20 million from the export of raw NIS and $30 million from post-harvest losses.
Furthermore, over 5,000 workers in the processing industry have lost their jobs in the first half of 2024 alone, with projections indicating that up to 30,000 more could be unemployed by mid-2025 if the situation persists. The reduction in local processing has also caused farmers to sell their produce at prices approximately 30 per cent lower than before, threatening the sustainability of their operations.
Local processors have been outbid by Chinese buyers, who use advanced technology to reject lower-quality nuts, leaving farmers with reduced income and processors with higher production costs. This situation is further exacerbated by the fact that Kenyan processors have long invested in the sector, providing farmers with extension support, inputs, and seedlings.
The MACNUT Association is now calling on the government to re-evaluate the policy on raw nut exports, reinstate a total ban on such exports, and introduce measures to support local processing. Proposed initiatives include educating farmers on market dynamics, offering government incentives for local processing investments, establishing quality standards for both raw and processed nuts, and promoting sustainable agricultural practices.
“Our industry is on the brink of collapse,” warned Mrs Maigua. “Immediate government action is necessary to preserve Kenya’s competitive edge in the global macadamia market and protect the livelihoods of thousands of Kenyans.”
The MACNUT Association’s proposals aim to restore stability and sustainability to Kenya’s macadamia industry, ensuring it remains a vital contributor to the country’s economy and a source of income for local farmers and workers.
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