By MKT Reporter
Nuts and More Processing (EA) EPZ Limited, a cashew nut processing company in Kilifi, is facing a critical shortage of raw materials.
The company, which has the capacity to process over 6,000 metric tonnes of cashew nuts in a single shift, has only secured 3,000 metric tonnes locally, forcing it to rely on imports from Tanzania to sustain operations.
The factory, which employs over 200 residents, is now struggling to maintain production levels and meet its export obligations.
State Department for Investment Promotion Principal Secretary Abubakar Hassan acknowledged the gravity of the situation and assured that his department, in collaboration with the Ministry of Agriculture and other relevant government bodies, is working on strategies to boost local cashew-nut production.
The government has established structures to ensure investors can access the European market quarter-free and duty-free, which will help reduce production costs and enhance profitability.
The PS also revealed plans to establish another cashew nut processing factory in Lamu as part of a broader value chain initiative.
Nuts and More Director Heinz Mueller attributed the shortage of raw materials to the recent El Niño season, which has adversely affected agricultural production in the region.
He remains optimistic that, with the government’s intervention, they will be able to improve the supply of raw materials to the factory.
