The Kenyan macadamia industry is heavily export-oriented, with approximately 95% of its annual production shipped to international markets.
In 2019, farm gate prices for macadamia nuts in shell (NIS)peaked at an all-time high of Kshs 180/kg. However, by early 2023, prices had dropped significantly, ranging between Kshs. 30-40/kg. To address this, the Ministry of Agriculture, under Section 43 of the AFA Act, 2013, lifted the ban on raw macadamia exports providing a one-year export window effective from 3rd November 2023.
This remedial measure aimed to stabilize prices and help farmers manage excess stock impacted by global market conditions. The Ministry says that a rapid industry assessment shows that many local companies lack quality stocks for processing.
The assessment also highlighted the harvesting, processing and export of immature nuts, leading to poor performance of the Kenyan macadamia in the global markets. The ministry has therefore decided to take action in order to safeguard the market.
“Exporting processed macadamia nuts (kernels) is more beneficial to Kenya than exporting raw in-shell (raw). Following consultations with industry stakeholders, a ban on macadamia harvesting will take effect from 2nd November 2024 until 1st March 2025 to curb the export of immature nuts. Dealers must submit their current stock for inspection, verification, and clearance by 15th November 2024. A minimum guaranteed farm gate price of at least Kshs 100 per kilogram will be implemented,” says the ministry in a statement signed by agriculture CS Andrew Karanja.
The Agriculture and Food Authority (AFA) is tasked with enforcing strict compliance with this directive, including revoking licenses of violators. It adds that the authority will also increase inspections and surveillance to eliminate unscrupulous dealers while the National and County Governments will continue working together to enforce the provisions of the Crops Act, 2013, and the Crops (Nuts and Oil Crops) Regulations, 2020.
