Kenyan macadamia farmers can breathe a sigh of relief as the government has temporarily suspended the law that bans the exportation of raw macadamia nuts. For the last two months, macadamia farmers have been reaping big from their produce as the government moves to assist in stabilizing the prices that have sunk to a record low.

Since March 2023, nine companies licensed to process nuts have been greatly affected by a lack of export markets. However, they have been relieved after the Kenyan government lifted a ban on exporting unprocessed macadamia.

Kenya's producers benefit from government decision

Last year, Mithika Linturi, the Agriculture CS, said in a gazette notice that he had suspended Section 43 of the Crops Act of 2013 as a countermeasure to address the price crisis that macadamia farmers are facing.

A circular by Linturi reads, in part, “The temporal lifting of the ban will facilitate access to the alternative market for the macadamia nuts originating from Kenya.''

This move has had a price increase since December 2023, from Sh 20 to over Sh 100 per kilo, as stated by members of the Nuts Traders Association of Kenya. Traders, processors, and farmers who were in a meeting held in Sagana observed that over 1000 tons of unprocessed nuts were exported in January 2024 to Asian markets.

Such statistics show that markets for raw nuts are opening up, and the government’s move to lift the ban has played a key role in stabilizing prices and macadamia markets.

Previously, macadamia farming has been one of the most profitable agribusinesses in Kenya despite the turbulence in prices, and it’s rapidly picking up the position. Currently, there are over 20 licensed processors with a capacity of 80,000 tons.

Are macadamia farmers and market players benefiting?

Kenyan market players are benefiting noticeably from the government’s decision to lift the ban temporarily. On the other hand, macadamia prices in South Africa have dropped by 17.6% between 2022 and 2023.

The chairman of the Nuts Traders Association of Kenya, Johnson Kihara, revealed how the law has affected macadamia farmers for the past 10 years, preventing them from getting better prices in export markets. Kihara further said that processors were left to hold their nuts in their factories as buyers of processed nuts in some European markets could not offer better markets.

“Some processors still have processed nuts in their warehouse. The markets for processed nuts are not always there, and we thank the Agriculture CS for listening to us and suspending Section 43 of the Crops Act of 2013,” the association’s chairman said.

“Today, farmers are selling their nuts at Sh 100 and above. Sadly, there are still brokers who are exploiting macadamia farmers by selling their nuts below the set price.” If this continues, Kihara fears that the government can impose the ban again.

Enemies to farmers

Despite the government's goal to help stabilize macadamia prices, some processors have gone to court to challenge Linturi's move. Recently, you might have seen macadamia nuts being hawked at events, places with gatherings, long roadsides, markets, and towns. It's pretty sad to see that there are individuals who want to see farmers getting exploited while there is an open market for raw nuts in countries like China.

What is AFA saying?

Kirangu Gathutha, a representative from AFA highlights that traders should abide by all conditions set by the government when it lifted the ban. All agents should be registered by AFA and should not buy macadamia from the farmers at a price below sh 100.

Kenya has a global market share of about 13%, making it the third-top macadamia producer. With prices stabilizing, it's time for farmers to reinvest in high-value crops. Although the ban will only last one year, market players and associations are working hard to have the regulation enforced for an extended period.

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