Kenya's macadamia sector faces a dilemma as two groups, the Macadamia Nut Association (MACNUT) and the Nut Traders Association of Kenya (NUTAK), propose differing strategies for nut exports. MACNUT supports the government's ban on exporting unprocessed nuts, suggesting it could generate over $80 million and create 30,000 jobs. They emphasize local processing as essential for sustaining the sector and maintaining global competitiveness. "We urge the government to maintain its policy on raw macadamia exports to protect local processing industries," MACNUT stated.
Conversely, NUTAK argues the ban favors processors and reduces government revenue. NUTAK's chairperson, Johnson Kihara, highlighted traders' issues with export licenses, stating the delay costs the government billions in revenue. Kihara appealed to national leaders to uphold a High Court order to allow international exports.
MACNUT counters that raw exports benefit traders while limiting job creation and income for farmers, and are linked to unethical practices. "There are reports of traders colluding with unscrupulous farmers," the association noted, impacting Kenya's market reputation and farmer earnings.
Value-added processing has diversified markets and benefited 200,000 farmers. The ban's implementation has caused contention among stakeholders. Last year, Mt Kenya farmers urged a review of the AFA Act, claiming it gives processors an unfair advantage.
Kihara noted macadamia exports reached $53 million last year, though discrepancies exist in government records. Another lobby claimed $50 million was lost due to the ban. MACNUT chairperson Jane Maigua stated the government lost $20 million from raw exports and $30 million from post-harvest losses. MACNUT stresses a balanced approach considering farmers, processors, and the economy.
Source: People Daily