• Macadamia farmers in Kenya face mounting losses as over 30,000 tonnes of raw nuts remain unsold following the closure of the three-month export window on October 10.

The Untold Sad State Of Macadamia Farming In Kenya 2023

Macadamia Farmers in Kenya Face Losses as 30,000 Tonnes of Nuts Remain Unsold

Macadamia farmers in Kenya are facing mounting financial losses after more than 30,000 metric tonnes of raw macadamia nuts reportedly remained unsold on farms and in storage facilities, following the closure of a three-month government-authorised export window on October 10.

The temporary lifting of export restrictions was expected to provide relief to farmers and processors struggling with excess supply, low farm-gate prices and limited domestic processing capacity. However, the export programme fell significantly short of expectations, with only 700 metric tonnes shipped against an anticipated allocation of 14,000 metric tonnes.

The Agriculture and Food Authority (AFA) had authorised raw macadamia exports between July and October to help clear accumulated stocks and provide farmers with access to additional international markets. Following the October 10 deadline, the regulator stopped further shipments, including nuts that had not been exported within the authorised period.

The decision has triggered fresh concerns among farmers, traders and processors, who say the industry needs predictable export policies and stronger market access to remain competitive.

Macadamia Export Window Delivers Only 700 Tonnes

According to a recent report by AFA Acting Director-General Calistus Kundu, only 700 metric tonnes of raw macadamia nuts had been shipped through the Port of Mombasa by 14 companies before the October 10 deadline.

The volume represents a small fraction of the expected 14,000 metric tonnes, leaving exporters with substantial quantities of nuts they had assembled in preparation for international shipments.

Kenya Macadamia Growers Association Vice Chairman Mureithi Gichabi has called on the government to extend the export period to allow traders to fulfil their contractual obligations.

Gichabi faulted the regulator for failing to facilitate the export process despite companies incurring expenses to collect, assemble and present their produce for the mandatory inspections.

He argued that exporters had invested resources in preparing the consignments, only to face restrictions before completing their shipments.

The association official warned that unpredictable government decisions were undermining confidence in the multi-billion-shilling macadamia industry, with some processing factories facing possible closure due to mounting stocks and limited market opportunities.

Farmers Struggle With Low Macadamia Prices

The growing stockpile has weakened farmers’ bargaining power, with producers reporting some of the lowest farm-gate prices experienced in recent years.

Jane Wambui, a macadamia farmer in Murang’a County, said the market glut had affected farmers’ earnings as buyers reduced their purchasing prices amid uncertainty over where to sell the accumulated produce.

For smallholder farmers, delayed purchases and falling prices create additional financial pressure, particularly for those who depend on seasonal macadamia sales to finance farm operations and household expenses.

The situation also threatens farmers who invested in orchard establishment, fertiliser, pruning, pest management and harvesting in anticipation of better returns.

Macadamia production requires years of investment before trees reach commercial production. Continued market uncertainty therefore raises concerns about the willingness of farmers to maintain or expand their orchards.

Industry Stakeholders Demand Predictable Export Policies

Nut Traders Association of Kenya Vice Chairman Njiru Kathangu has called for more predictable government policies, including regular opportunities to export raw macadamia nuts to China.

He argued that farmers and traders need alternative markets to reduce dependence on local processors, particularly during periods of excess production.

China remains an important potential destination for Kenyan raw macadamia nuts, and stakeholders want the government to establish a more consistent framework for accessing the market.

They argue that relying on occasional export windows creates uncertainty for exporters who need sufficient time to negotiate contracts, assemble produce, complete inspections and organise international shipments.

Macadamia value chain expert Peter Mwangi warned that the current crisis resembles a similar situation experienced three years ago when excess production left farmers struggling to find buyers.

During the earlier crisis, farmers were forced to hawk their nuts as processors failed to absorb available supplies. The situation prompted the temporary lifting of the raw nut export ban by former Agriculture Cabinet Secretary Mithika Linturi.

Mwangi identified Murang’a, Nyeri, Embu, Meru, Kirinyaga, Uasin Gishu and Baringo among the counties affected by the current market uncertainty.

Calls to Amend the Agriculture and Food Authority Act

Stakeholders are also pushing for legal reforms to address restrictions on raw macadamia exports.

Taita Taveta industry stakeholder Moses Karasha has called for amendments to the Agriculture and Food Authority Act to remove legal barriers preventing the export of raw nuts.

He argued that Kenya’s domestic processing industry lacks sufficient capacity to absorb the country’s annual macadamia production, estimated at approximately 75,000 metric tonnes.

The capacity challenge means farmers risk accumulating unsold produce whenever local processors struggle to purchase or process the available harvest.

Stakeholders believe allowing greater access to international markets would provide another outlet for surplus production and improve competition among buyers.

However, the debate also raises questions about how Kenya should balance raw nut exports with the development of local processing industries, which add value through processing, packaging and marketing finished products.

Nakuru Estates Report Thousands of Tonnes Awaiting Export

The export restrictions have also affected large-scale producers and commercial estates.

In Nakuru, large-estate representative Jacinta Mwai reported that more than 5,000 metric tonnes of macadamia nuts were awaiting shipment.

She urged AFA to extend the export window, warning that continued uncertainty was damaging investor confidence and threatening Kenya’s reputation among international buyers.

Exporters who enter supply agreements with overseas customers depend on predictable regulations to meet delivery schedules. Sudden changes to export arrangements risk disrupting contracts and increasing storage, handling and operational costs.

Stakeholders fear that repeated disruptions could make international buyers less willing to enter into long-term supply agreements with Kenyan exporters.

Stakeholders Propose Government-Backed Financing for Processors

Beyond export policy changes, industry players are proposing financial support to help processors manage seasonal purchases and ensure farmers receive timely payments.

One proposal involves establishing a government-backed revolving fund modelled on the Coffee Cherry Advance Revolving Fund.

The proposed facility would provide financing to macadamia processors, helping them purchase nuts from farmers even when working capital is limited.

Supporters argue that improved access to affordable financing would strengthen processors’ ability to absorb seasonal production, reduce payment delays and stabilise the market.

For farmers, reliable payments are essential because macadamia production involves recurring costs, including orchard maintenance, harvesting, labour and farm inputs.

A revolving financing arrangement would also help processors avoid relying entirely on short-term commercial borrowing to finance purchases.

What the Macadamia Crisis Means for Kenyan Farmers

The current situation exposes the challenges facing Kenya’s macadamia value chain as production expands faster than available market outlets and processing capacity.

With annual production estimated at approximately 75,000 metric tonnes, the country needs sufficient domestic processing capacity and reliable export channels to handle seasonal harvests.

For farmers, the immediate concern is access to buyers offering competitive prices and making payments on time.

Continued accumulation of unsold nuts threatens farm incomes and could discourage investment in orchard management and new macadamia plantings.

The industry also needs better coordination between farmers, traders, processors, exporters and regulators to avoid repeating previous market disruptions.

Stakeholders are now calling for urgent policy reforms, an extension of export opportunities and financial support for processors.

Without reliable markets and predictable regulations, farmers and investors risk continuing to bear the financial burden of an industry struggling to manage its growing production.

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