Export Ban Continues as the Mature Macadamia Nut Harvest Season Begins on March 1, 2025

The macadamia industry in Kenya plays an important role in supporting the country’s economy and it relies largely on the international market. Around 95% of Kenya's annual macadamia production is shipped to international markets, making it a key export product. In 2019, the industry saw an impressive spike in prices, with macadamia nuts reaching an all-time high of Ksh. 180 per kilogram. This price increase gave farmers a sense of hope and encouraged investment in the sector. However, by early 2023 the market faced a significant drop and the prices had dropped dramatically to between Ksh. 30-40 per kilogram, quite a drastic change that left many macadamia farmers struggling with lower income and loads unsold stock.

Macadamia Farming in Kenya

In reaction to these challenges, the Ministry of Agriculture, Livestock, and Fisheries took swift action to stabilize the industry. Under the Agriculture and Food Authority (AFA) Act of 2013, the government lifted the ban on raw macadamia exports. This decision allowed farmers to access international markets once again, providing a temporary solution to the surplus stock problem caused by fluctuating global demand. The move to lift the ban was put in place to help stabilize prices and assist farmers who were affected by the shift in the global macadamia market.

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A recent review of the industry found several challenges that need addressing to ensure the long-term success of Kenya’s macadamia industry. One of the issues identified was the difficulty many local companies face in sourcing high-quality nuts for processing. Many processing companies have been struggling to find good stock, which then affects their ability to meet global market standards. 

The investigation went on further to reveal a concerning trend of immature nuts being harvested, processed and exported, which has damaged Kenya’s reputation as a reliable supplier of high-quality macadamia nuts. The export of immature nuts outcomes are low-quality products that are not as competitive in international markets. The professionals have highlighted that export in processed macadamia kernels, that is the nut meat, is far more profitable and quite beneficial for Kenya than exporting raw in-shell nuts. Processed kernels have higher value and are more appealing to buyers in international markets.

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To give a discourse these issues and ensure the quality of the nuts being exported, the government implemented a new regulation to curb the harvesting and export of immature nuts. A temporary ban on macadamia harvesting was enforced starting November 2, 2024, with the ban lasting until March 1, 2025. This course of action is designed to give the trees enough time to produce mature, high-quality nuts that meet global standards. In addition to the harvesting ban, the government required all dealers to submit their current stock for inspection, verification and clearance by last year November 15, 2024. This inspection process is intended to ensure that only mature nuts are harvested and exported.

Furthermore, the government introduced a minimum farm gate price of Ksh. 100 per kilogram to protect farmers from the extreme price fluctuations that had previously affected them. This market price support ensures that farmers are paid a reasonable price for their macadamia nuts, even when market prices are low.

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The Agriculture and Food Authority has been assigned with strictly enforcing these new regulations. Dealers who fail to comply with the rules will have their licenses revoked. In making sure that the industry remains on track the Agriculture and Food Authority has also committed to increasing inspections and surveillance to catch any dishonest dealers who might try to circumvent the regulations. This is a critical step in rebuilding the reputation of Kenyan macadamias and ensuring that only the best-quality products reach international markets.

A Macadamia Harvest

The new harvesting season for mature macadamia nuts officially begins today, Saturday, March 1, 2025, as announced by Agriculture and Livestock Development Cabinet Secretary, Mutahi Kagwe, in a statement made earlier this week. However, the CS confirmed that the ban on exporting raw, in-shell macadamia nuts will still be in place. This continued restriction is part of the government's broader efforts to ensure the industry complies with national laws including the Agricultural Food Authority Act and the Oil Crops Regulations of 2020, as well as international commitments.

In a meeting with the key players in the macadamia industry, CS Kagwe put emphasis that the future success of the industry requires a unified approach. He explained that focusing majorly on exporting raw in-shell nuts would not be of any gain to Kenya in the long term. Instead, the country needs to invest in the processing of macadamia nuts to add value and increase the marketability of Kenyan products. He encouraged farmers to register under the Kenya Integrated Agricultural Management Information System (KIAMIS), which would help the government, farmers and industry partners better plan for the future of the sector. The registration system will help track and manage the macadamia supply chain more effectively.

Macadamia Tree

To lend further support to farmers, county governments in partnership with the AFA, will offer several initiatives to improve the industry. These initiatives include providing e-Extension services to share valuable information with farmers, offering subsidized fertilizer to boost yields and supplying market information to help farmers make informed decisions. In addition, organized support groups will be formed to strengthen collaboration and strengthen the industry at the grassroots level.

 The AFA will also lead the creation of a Macadamia Nuts Standing Committee, which will be tasked with addressing challenges in the sector, ensuring traceability and improving the quality and reputation of Kenyan macadamia nuts.

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Kenya is presently the third-largest producer of macadamia nuts in the world, and this position is an important achievement for the country. However, if the issues affecting the industry are not addressed there is a real risk of losing this ranking. The government and key players are working hard to protect and grow the industry, improve quality standards and create more job opportunities for locals. If there is continued focus on quality, value-added processing and compliance with both national and international regulations, the country can get a competitive possession position in the global market and continue to reap the benefits of its macadamia industry for years to come.