Macadamia Farmers and Traders Face Mounting Losses Amid Extended Export Ban on In-Shell Nuts
Macadamia farmers and traders in Kenya are raising alarm over significant financial losses resulting from the government’s prolonged ban on the export of in-shell macadamia nuts. The ban, reinstated on January 2, 2024, has left farmers with unsold stocks that are now rotting in their farms and storage facilities, exacerbating an already dire situation.
The farmers and traders voiced their frustrations during a meeting held in Murang’a on Saturday, highlighting the government’s failure to address their concerns despite repeated appeals to the Agriculture Cabinet Secretary. They have sought a one-year extension to the export window for in-shell nuts, but their requests have gone unanswered.
The ban on exporting unprocessed macadamia nuts was initially lifted on November 2, 2023, by former Agriculture Cabinet Secretary Mithika Linturi, with the exemption set to expire on November 2, 2023. However, the period was extended to January 2, 2024, by former CS Andrew Karanja. Since then, farmers and traders have been left in limbo, with no clear resolution in sight.
Johnson Kihara, Chairman of the Nuts Traders Association of Kenya (NUTRAK), emphasized the severity of the situation, noting that many farmers are stuck with large stocks of macadamia nuts they cannot sell. Traders, too, are facing significant losses, as the Agriculture and Food Authority (AFA) has refused to issue export certificates, effectively halting their operations.
“I have three containers of nuts in my stores, but the government has denied us export certificates. If I can’t sell them, I can’t buy more from farmers. Ultimately, it’s the farmers who suffer,” Kihara lamented.
He further revealed that major traders, including Lenana Processors, Edenswin Traders Ltd, and Topnut Mac and Commodities, are sitting on unsold stocks worth millions of shillings. With each container valued at approximately Sh20 million, the financial toll on the sector is staggering.
The crisis has reignited calls for the repeal of Section 43 of the AFA Act, which prohibits the export of raw nuts and oil crops. Critics argue that the law disproportionately benefits large-scale processors with the financial capacity to invest in expensive processing machinery, while smaller players and farmers are left at a disadvantage.
“Setting up a macadamia processing plant requires nearly Sh500 million. How many investors can afford this? Meanwhile, there are international buyers ready to purchase our in-shell nuts at competitive prices,” Kihara stated.
In response to rising malpractices in the sector, AFA announced on February 6 that it would intensify its crackdown. The authority cited issues such as the harvesting and processing of immature nuts, unauthorized trading by unlicensed individuals, and the smuggling of in-shell nuts out of the country. However, stakeholders argue that the crackdown violates a High Court order issued in November 2023 by Justice Lawrence Mugambi, which suspended a ministerial directive restricting macadamia harvesting.
Peter Maina, a director at Topnut Mac and Commodities, accused AFA of excluding key stakeholders from public participation processes that led to the establishment of the Macadamia Nut Processors Association (MACNUT) as the sole exporter of macadamia nuts. He claimed that the meetings were held in private hotels, sidelining many affected parties.
Farmers like Murithi Gichabi warn that the sector is on the brink of collapse if urgent measures are not taken. Gichabi noted that 65% of macadamia nuts sold in Kenya are in-shell, with only 35% processed into kernels. He called on the Ministry of Agriculture and AFA to convene a stakeholders’ forum to address the challenges facing the industry.
“Farmers have invested heavily in macadamia farming. Allowing them to sell their nuts at throwaway prices is devastating. We need immediate action to save this sector,” Gichabi urged.
As the standoff continues, the future of Kenya’s macadamia industry hangs in the balance, with farmers and traders alike calling for swift government intervention to avert further losses.
