Kenyan macadamia growers urge export ban lift as local processors offer below market rates
The policy was designed to encourage local value addition, create jobs, and build a domestic processing industry.
KENYA – Macadamia growers in Kenya are calling on the government to lift the ban on exports of unprocessed nuts, saying local processors are offering prices between KES50 and KES80 per kilogram (US$0.39 to US$0.62/kg), far below export buyer offers of up to KES200 per kilogram (US$1.56/kg).
The export of in-shell macadamia nuts was originally banned in 2009 to support domestic processing capacity and employment.
The policy was designed to encourage local value addition, create jobs, and build a domestic processing industry. However, the financial impact of local processing versus raw exports is stark. Growers in Embu, Murang’a, Kirinyaga, Nyeri, and Meru report that current processor prices do not cover production costs.
“The current prices of between Sh50 and Sh80 per kilo are not favourable to us. If I sell my produce at those prices, I will incur huge losses. Exporters pay up to Sh200 per kilo, and with my 10 tons, I would earn good money,” said Charles Mwangi, a grower from Nyeri.
Consequently, some produce remains unharvested or rotting on farms. Nahashon Mugi, a grower in Murang’a, stated, “We spend a lot taking care of our trees, and it hurts to see our nuts rotting on farms. So far, I have about 15 tons that have not been harvested.”
The main arguments for lifting the ban include farmer survival, market access to higher international prices, and reduced post-harvest losses. Proponents argue that export windows would allow growers to earn sustainable incomes and clear accumulated inventory.
On the other hand, arguments against lifting the ban include potential job losses in domestic processing facilities, reduced local value addition, and undermining industrialization goals.
Kirinyaga Senator Kamau Murango said he has been attempting since 2023 to amend legislation affecting Macadamia and cashew growers. “Since 2023, I have been trying to introduce an amendment to the law, which continues to discriminate against macadamia and cashew nut farmers, but my efforts have always been frustrated,” Murango said.
Last month, Agriculture Cabinet Secretary Mutahi Kagwe directed processors to comply with the ministry’s recommended price of KES100 per kilogram (US$0.78/kg), warning that failure to do so could result in the reopening of exports.
The situation highlights the tension between industrialization goals and producer economics, suggesting that balanced policies that allow temporary export windows during price troughs could offer a sustainable middle ground.
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