Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe has confirmed that Kenya will maintain its ban on exporting raw macadamia. This measure aims to protect over 200,000 jobs and enhance local processing capabilities.
Kagwe stated that lifting the ban would negatively impact the macadamia value chain, conflicting with the government's objective of promoting value addition and local industrial growth. He highlighted that from July 2023 to February 2025, Kenya generated approximately $59 million from exporting 10,670 tons of processed macadamia, in contrast to $15.6 million from 14,384.6 tons of raw macadamia.
The CS noted that processed macadamia achieves $5.54 per kg, significantly more than $1.09 per kg for in-shell nuts. "We are focused on supporting farmers and processors rather than lifting the export ban. Farmers will be assisted in forming cooperatives to negotiate better prices and will be incorporated into the Kenya Integrated Agricultural Management System (KIAMIS) for access to government subsidies," Kagwe added.
A minimum guarantee price of $0.68 per kg is being implemented by the ministry. The government will protect local processors from unfair competition, offer training on production techniques and quality enhancement, and facilitate international market access. Additionally, a regular production calendar will be established for effective quality control.
Farmers are encouraged to register with KIAMIS to access government subsidy programs. Kagwe mentioned forming a multi-stakeholder Macadamia Nuts Standing Committee to discuss farm gate prices and develop mechanisms to prevent farmer exploitation. This initiative will involve collaboration with county governments and key value chain players.
Source: The Star