Macadamia farmers and traders in Kenya are expressing their dissatisfaction due to the continued ban on exporting raw nuts, despite rising demand in international markets such as China.
According to FairNuts Company Marketing Director Ian Kihara, China offers a huge opportunity for Kenyan macadamia, since the consumers there prefer nuts in their natural, unprocessed form.
Speaking to KNA, Kihara explained that the nuts are often sold partially cracked, with a small metal tool provided to help buyers open them fully.
However, the current export ban has made it hard for farmers and traders to benefit from this growing demand.
The director pointed out that a similar crisis was experienced in 2023, when an oversupply of macadamia pushed prices down to as low as Sh10 per kilogramme.
The then Agriculture Cabinet Secretary Mithika Linturi temporarily lifted the export ban, a move that quickly improved prices.
“Farm-gate prices rose to about Sh150 per kilogramme as more buyers entered the market,” Kihara noted.
The ban was later reinstated in November 2024, with traders given until January 3, 2025, to clear their stock. Since then, Kihara observed that the sector has slowed down again.
He adds that meetings with the current Agriculture CS Mutahi Kagwe have not provided a clear solution, as the government insists on maintaining the ban to promote local value addition.
“If the goal is to create jobs through value addition, then we should see results. How many new companies have been set up? How many jobs have been created?,” he posed.
Kihara also revealed that several foreign firms, including Chinese companies that had set up operations in Kenya to dry macadamia before export, have since closed down leading to job losses.
He stated that the sector is currently struggling, with some companies relying on support from non-governmental organizations to stay afloat.
Despite the challenges, Kihara expressed hope after recent remarks by CS Kagwe suggesting the ban could be lifted if local processors fail to absorb all the produce.
“If the market is opened, farmers will earn more, traders will recover, and the government will also benefit,” he said.
Kihara noted that his company invested heavily in machinery including automatic dryer’s worth over Sh50 million, which are now lying idle due to reduced business.
He is now calling for a balanced approach that will allow farmers to access markets while still supporting local processing.
By Bernard Munyao
